The proposed bill seeks to amend the Michigan Insurance Code of 1956 by adding Chapter 71A, which focuses on Small Business Health Coverage. This chapter introduces definitions and requirements for small business health pools, which are state-regulated multiple employer welfare arrangements (MEWAs) designed to provide health coverage to eligible employers and self-employed individuals through bona fide sponsoring associations. Key definitions include "eligible employer," which refers to small businesses with fewer than 500 employees, and "small business health pool," which is a licensed arrangement to provide health coverage. The chapter mandates that each pool must offer coverage that includes all essential health benefits as required by federal law and comply with various standards related to mental health, maternity, and preventive services.

Additionally, the bill establishes a small employer catastrophic reinsurance program to reimburse a portion of eligible claims, funded entirely by state appropriation, with the aim of stabilizing premiums and expanding coverage for small businesses. The bill outlines the licensing requirements for pools, the conditions under which they can operate, and the director's authority to enforce compliance and report on the program's performance. Overall, the legislation aims to enhance access to affordable health coverage for small businesses in Michigan while ensuring consumer protection and regulatory oversight.

Statutes affected:
Senate Introduced Bill: 500.100, 500.8302
As Passed by the Senate: 500.100, 500.8302