HOUSE BILL No. 5787


     May 16, 2000, Introduced by Reps. Schauer, DeHart, Schermesser, Wojno, Callahan, Vaughn, Prusi, Brater, Dennis,
Lockwood, Martinez, Scott, Bogardus, Bovin, Neumann, Baird and Lemmons and referred to the Committee on Insurance and
Financial Services.


        A bill to amend 1978 PA 368, entitled

   "Public health code,"

   (MCL 333.1101 to 333.25211) by adding section 21048.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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           SEC. 21048.  (1) A HEALTH MAINTENANCE ORGANIZATION AND AN

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      ALTERNATIVE SYSTEM OF HEALTH CARE DELIVERY AND FINANCING LICENSED

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      UNDER SECTION 21042 SHALL NOT FINANCIALLY REWARD OR PENALIZE A

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      HEALTH CARE PROVIDER BASED UPON HIS OR HER ABILITY TO DIRECTLY OR

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      INDIRECTLY REDUCE OR LIMIT HEALTH CARE SERVICES TO ENROLLEES.

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           (2) SUBSECTION (1) DOES NOT PROHIBIT BONUSES OR OTHER

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      ARRANGEMENTS THAT ARE BASED SOLELY ON QUALITY OF CARE OR OTHER

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      NONUTILIZATION OF HEALTH CARE SERVICES FACTORS.








   01010'99          Final page.                            DKH