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Home » US Law » 2022 Michigan Compiled Laws » Chapter 550 - General Insurance Laws » Act 233 of 1984 - Prudent Purchaser Act (550.51 - 550.63)

Section 550.51 – Short Title.

550.51 Short title. Sec. 1. This act shall be known and may be cited as the “prudent purchaser act”. History: 1984, Act 233, Eff. Dec. 20, 1984 Compiler’s Notes: For transfer of authority, powers, duties, functions, and responsibilities of the insurance bureau and the commissioner of insurance to the commissioner of the office of financial […]

Section 550.52 – Definitions.

550.52 Definitions. Sec. 2. As used in this act: (a) “Commissioner” means the commissioner of insurance. (b) “Dental care corporation” means a dental care corporation incorporated under 1963 PA 125, MCL 550.351 to 550.373. (c) “Health care corporation” means a health care corporation incorporated under the nonprofit health care corporation reform act, 1980 PA 350, […]

Section 550.53 – Prudent Purchaser Agreement; Number; Location of Health Care Provider; Membership on Provider Panel; Written Standards; Notice Procedures; Provider Application Period; Providing Standards on Request; Notice of Acceptance or Rejection; Reasons for Termination; Professional Review Program; Evaluation; 2 or More Classes of Health Care Providers Providing Same Health Care Service; Removal From Provider Panel; Membership in More Than 1 Provider Panel; Provider Panel Including Health Care Providers and Facilities Outside State; Required Information; Emergency Episode of Illness or Injury; Limiting Number of Prudent Purchaser Agreements; Benefits for Services Within Scope of Practice of Optometry, Chiropractic, or Physical Therapy.

550.53 Prudent purchaser agreement; number; location of health care provider; membership on provider panel; written standards; notice procedures; provider application period; providing standards on request; notice of acceptance or rejection; reasons for termination; professional review program; evaluation; 2 or more classes of health care providers providing same health care service; removal from provider panel; membership […]

Section 550.53a – Disclosure of Financial Relationships Between Organization and Participating Health Care Providers, Health Care Facilities, or Other Entities.

550.53a Disclosure of financial relationships between organization and participating health care providers, health care facilities, or other entities. Sec. 3a. An organization that establishes a prudent purchaser agreement shall disclose in writing to all purchasers of its coverage and to all covered members of its plans upon request the financial relationships between the organization and […]

Section 550.54 – Discrimination Prohibited; Complaint of Violation; Hearing; Penalty.

550.54 Discrimination prohibited; complaint of violation; hearing; penalty. Sec. 4. An organization shall not refuse to enter into a prudent purchaser agreement with a health care provider on the basis of religion, race, color, national origin, age, sex, or marital status. Upon receipt of a complaint of a violation of this section, in a form […]

Section 550.55 – Notice of Membership in Provider Panels; Display.

550.55 Notice of membership in provider panels; display. Sec. 5. A health care provider which is a member of a provider panel shall display a notice in a conspicuous place at the entrance of the health care provider’s facility indicating those provider panels to which the health care provider is a member. History: 1984, Act […]

Section 550.56 – Reporting Certain Information on Standard Forms Required; Availability of Information to Appropriate State Agencies; Confidentiality.

550.56 Reporting certain information on standard forms required; availability of information to appropriate state agencies; confidentiality. Sec. 6. (1) An organization which enters into prudent purchaser agreements with health care providers under this act shall report with its annual statement, or on a date set by the commissioner, on standard forms prescribed by the commissioner […]

Section 550.58 – Organization Subject to Enabling Act; Financial Records.

550.58 Organization subject to enabling act; financial records. Sec. 8. (1) An organization which provides or administers health care benefits or coverage under a prudent purchaser agreement shall remain subject to all of the provisions of its enabling act. (2) An organization shall maintain financial records for its prudent purchaser agreements and activities in a […]

Section 550.59 – Report on Competition in Retail Pharmacy Industry.

550.59 Report on competition in retail pharmacy industry. Sec. 9. The department of management and budget shall contract with an independent third party for a report which shall determine the extent of competition in the retail pharmacy industry, whether such competition results in maximum economic efficiency and the lowest possible costs for consumers, and the […]

Section 550.62 – Provisions Inapplicable to Certain Contracts and Renewal Thereof.

550.62 Provisions inapplicable to certain contracts and renewal thereof. Sec. 12. Nothing in this act shall apply to any contract which is in existence before the effective date of this act, or the renewal of such contract. History: 1984, Act 233, Eff. Dec. 20, 1984 Compiler’s Notes: For transfer of authority, powers, duties, functions, and […]

Section 550.63 – Conditional Effective Date.

550.63 Conditional effective date. Sec. 13. This act shall not take effect unless all of the following bills of the 82nd Legislature are enacted into law: (a) Senate Bill No. 714. (b) House Bill No. 4799. (c) House Bill No. 4800. (d) House Bill No. 4801. (e) House Bill No. 5067. (f) House Bill No. […]