Legislative Analysis
Phone: (517) 373-8080
HEALTH INFORMATION EXCHANGE
http://www.house.mi.gov/hfa
House Bill 5283 (proposed substitute H-1) Analysis available at
Sponsor: Rep. Julie M. Rogers http://www.legislature.mi.gov
House Bill 5284 (proposed substitute H-1)
Sponsor: Rep. Curt S. VanderWall
Committee: Health Policy
Complete to 12-4-24
SUMMARY:
House Bill 5283 would amend the Public Health Code to require, by March 1, 2025, that a
request for proposal be issued in accordance with the Management and Budget Act to select a
health information exchange to operate a health data utility in Michigan. The request for
proposal and any resulting contract would, at a minimum, have to require the health
information exchange to comply with all Michigan and federal laws that pertain to cyber
security and data protection.
Health information exchange would mean the nonprofit entity that operates an
inclusive health information technology infrastructure in Michigan that serves as a
health data aggregator and is enabled to collect, normalize, and share disparate health
data content from a diverse set of health data sources.
Health data utility would mean a system operated by the health information exchange
that does all of the following:
• Combines, enhances, and facilitates the exchange of disparate clinical and
other health data for treatment, care coordination, quality improvement,
population health, public health emergencies, and other public health and
community health purposes.
• Identifies trusted data sharing organizations and allows only them to access and
submit data.
• Provides those trusted data sharing organizations with access to data so as to
support care coordination among participants.
• Provides a variety of technical services a participant can choose from to allow
for the exchange of information using multiple modalities, including query
searches and push notifications.
• Promotes interoperability between the state, health care entities, and other
participants.
• Is patient-centered and market-driven.
• Ensures that access to and submission of data comply with Michigan and
federal laws related to health information.
House Fiscal Agency Page 1 of 3
 The health information exchange selected as provided above would have to meet all of the
following:
• Be able to route relevant real-time data.
• Be able to allow a program that monitors any of the following to access relevant data:
o Public safety or population health.
o Adherence to another program’s requirements.
o Compliance with Michigan laws.
• Be able to improve the quality of health care in Michigan by increasing public health
monitoring efforts, incorporating public health data into electronic records, and
allowing for the coordination of care in clinical and social decision-making efforts.
• Comply with all applicable federal and Michigan laws regarding standards-based
health data exchange, including by adhering to legally required data protection
requirements.
• Have a governing board with representatives who have expertise in public health or
who are associated with the Department of Health and Human Services (DHHS), the
Health Information Technology Commission, a hospital, a health plan, a human
services organization, a physician organization, or a pharmacy.
• Maintain a high level of cybersecurity standards, including at least a certification from
HITRUST Alliance or a similar certification that, through a third-party assessment,
requires an organization to demonstrate compliance with Common Security
Framework and requires adherence to industry best practices and standards.
• Be a nonprofit health information exchange that operates in Michigan and has technical
connections to a significant percentage of health care providers, public health agencies,
and payors in Michigan.
• Have a technology infrastructure that includes the following to provide a high level of
protection of patient data:
o Advance identity management.
o Patient consent management that allows the patient to manage their consent
practices.
o Patient matching.
• Provide all patients, through a clear and conspicuous process, the ability to opt out of
data sharing through the health data utility at any time.
MCL 333.2501 and proposed MCL 333.2508
House Bill 5284 would amend the Insurance Provider Assessment Act to provide an earmark
from Insurance Provider Fund expenditures for the health information exchange designated
under HB 5283. Currently under the act, DHHS must expend money from the fund, upon
appropriation, only for one or more of the following purposes:
• The amount necessary to continue to support the payment of actuarially sound
capitation rates to Medicaid managed care organizations.
• Administrative and compliance costs in accordance with section 15 of the act.
• The balance after the above to be transferred to a separate restricted account in the fund
and used only as appropriated by the legislature.
House Fiscal Agency HBs 5283 and 5284 (proposed H-1 substitutes) Page 2 of 3
 Under the bill, DHHS would have to expend the money, upon appropriation, only for one or
more of the following purposes:
• The amount necessary to continue to support the payment of actuarially sound
capitation rates to Medicaid managed care organizations.
• Administrative and compliance costs in accordance with section 15.
• For the 2024-25 state fiscal year only, $6.0 million to the health information exchange
selected under House Bill 5283.
• For the 2025-26 state fiscal year only, $7.0 million to the health information exchange
selected under House Bill 5283.
• For the 2026-27 state fiscal year and every subsequent state fiscal year, $8.0 million to
the health information exchange selected under House Bill 5283. The bill would require
this amount to be adjusted for inflation annually beginning January 1, 2027, using the
Detroit Consumer Price index for all items for the prior 12-month period as reported
by the U.S. Department of Labor.
• The balance after the above to be transferred to a separate restricted account in the fund
and used only as appropriated by the legislature.
The bill cannot take effect unless House Bill 5283 is also enacted.
MCL 550.1763
FISCAL IMPACT:
House Bills 5283 and 5284 would increase GF/GP needed as the state share of Medicaid by
$6.0 million in Fiscal Year 2024-25, $7.0 million in FY 2025-26, $8.0 million in FY 2026-27,
and adjusted by the Detroit Consumer Price Index annually thereafter. The earmark of those
funds would be repurposed from being used for the state share of Medicaid costs. For FY 2024-
25, the federal Medicaid match rate is 65.13% and the state share of Medicaid is 34.87%. These
bills would have no fiscal impact on local units of government.
Legislative Analyst: Rick Yuille
Fiscal Analyst: Kevin Koorstra
■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their
deliberations and does not constitute an official statement of legislative intent.
House Fiscal Agency HBs 5283 and 5284 (proposed H-1 substitutes) Page 3 of 3


Statutes affected:
Substitute (H-1): 550.1763
House Introduced Bill: 550.1763
As Passed by the House: 550.1763