Legislative Analysis
Phone: (517) 373-8080
METHODS OF PAYMENT FOR DENTAL BENEFITS
http://www.house.mi.gov/hfa
Senate Bill 1106 (S-1) as passed by the Senate Analysis available at
Sponsor: Sen. Jeff Irwin http://www.legislature.mi.gov
House Committee: Government Operations
Senate Committee: Finance, Insurance, and Consumer Protection
Complete to 12-17-24
SUMMARY:
Senate Bill 1106 would amend the Insurance Code to require a health plan or nonprofit
dental corporation 1 that provides dental benefits to provide one or more methods of
payment or reimbursement that provide the dentist with 100% of the amount payable
without charging a fee. (However, this would not apply to fees charged by the dentist’s
financial institution.) If a dentist opts out of a method of payment described above, that
decision would remain in effect until either they opt back in or a new contract is executed.
Health plan would mean both of the following:
• An insurer providing benefits under a health insurance policy, including a
policy, certificate, or contract that provides coverage for specific diseases
or accidents only, an expense-incurred vision or dental policy, or a hospital
indemnity, Medicare supplement, long-term care, or one-time limited
duration policy or certificate, but not payments made to an administrative
services only or cost-plus arrangement.
• A multiple employer welfare arrangement regulated under Chapter 70 of
the code 2 that provides hospital, medical, surgical, vision, dental, and sick
care benefits.
The bill would apply to dental benefits policies delivered, issued for delivery, or renewed
in Michigan after its effective date.
Proposed MCL 500.3406kk
FISCAL IMPACT:
The bill would have an indeterminate fiscal impact on the state. Section 150 of the
Insurance Code provides for recourse and penalties in the event of a violation of the code.
Under those provisions, violators have the opportunity for an administrative hearing before
the DIFS director, who may levy a civil fine of $1,000 for each violation, or $5,000 if the
individual knew or reasonably should have known that they were violating the Insurance
Code. Civil fine payments under the Insurance Code are capped at $50,000, and any
revenue collected must be deposited to the general fund. To the extent that violations of
1
Organized under 1963 PA 125: https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-Act-125-of-1963
2
https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-218-1956-70
House Fiscal Agency Page 1 of 2
 the new provisions occur, additional general fund revenue may be realized and enforcement
costs incurred.
Legislative Analyst: Rick Yuille
Fiscal Analyst: Una Jakupovic
■ 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 SB 1106 (S-1) as passed by the Senate Page 2 of 2


Statutes affected:
Substitute (S-1): 500.100, 500.8302
Senate Introduced Bill: 500.100, 500.8302
As Passed by the Senate: 500.100, 500.8302