The bill amends the Michigan Insurance Code of 1956 by adding a new section, 3406uu, which establishes specific requirements for insurers offering group disability insurance policies. Under this new provision, insurers must recognize the closure of a health system or its removal from the insurer's network as a qualifying event that triggers a special enrollment period. Additionally, if a health system in the insurer's network is closed or removed, the insured is allowed to terminate their group disability insurance policy without facing any penalties.

Furthermore, the bill mandates that insurers must offer a new group disability insurance policy to individuals whose existing policies were impacted by the closure or removal of a health system from another insurer's network. In such cases, the new insurer is required to credit the insured for any deductibles or out-of-pocket maximums that were previously paid under the affected policy. The bill also defines key terms such as "health system," "qualifying event," and "special enrollment period" to clarify the scope of these provisions.

Statutes affected:
House Introduced Bill: 500.100, 500.8302