SB-1255, As Passed Senate, June 1, 2006

SUBSTITUTE FOR

SENATE BILL NO. 1255

(Amended, May 31, 2006)

     A bill to amend 1939 PA 280, entitled

"The social welfare act,"

(MCL 400.1 to 400.119b) by adding section 105b.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 105b. The department shall seek appropriate amendments to

the medicaid state plan and shall <<include in any federal waiver

request, submitted with the intent to secure federal matching funds to

cover the medically uninsured, language>> to allow the department of

community health to do, at a minimum, all of the following:

     (a) Use medicaid funds to create incentives for individual

medical assistance recipients who practice specified positive

health behaviors. The incentives described in this subdivision may

include, but are not limited to, expanded benefits and <<

>> incentives relating to premiums, co-pays, or benefits.

     (b) Allow the department of community health to create pay-

for-performance incentives for contracted medicaid health

Senate Bill No. 1255 as amended May 31, 2006

maintenance organizations. The medicaid health maintenance

organization contracts would include incentives for meeting health

outcome targets for chronic disease states and patient compliance

targets established by the department of community health.

     (c) Allow the department of community health to establish a

<<PREFERRED PRODUCT AND SERVICE FORMULARY>> program for durable medical

equipment. The

<<preferred product and service formulary>> program for durable medical

equipment would

require participation from the department of community health, the

contracted medicaid health maintenance organizations, and provider

organizations. <<

>>

     (d) Provide financial support for electronic health records

including e-prescribing, web-based medical records, and other

health information technology initiatives using medicaid funds.