MI Comp L § 550.1653 (2021)
2021 Michigan Compiled Laws|Chapter 550 - General Insurance Laws|Act 350 of 1980 - The Nonprofit Health Care Corporation Reform Act (550.1101 - 550.1704)|350-1980-6A - Part 6a Health Endowment Fund Corporations (550.1651...550.1655)|Section 550.1653 - Charitable Purpose Nonprofit Corporation; Receipt and Administration of Funds; Articles of Incorporation; Grants; Conflict With Other Provisions of Law; Social Mission Contributions; Fund as Private, Nonprofit Corporation.

550.1653 Charitable purpose nonprofit corporation; receipt and administration of funds; articles of incorporation; grants; conflict with other provisions of law; social mission contributions; fund as private, nonprofit corporation.Sec. 653.  (1) A charitable purpose nonprofit corporation may be incorporated on a nonstock, directorship basis, under the nonprofit corporation act, 1982 PA 162, MCL 450.2101 to 450.3192 consistent with this part and, if incorporated under this section, shall be organized to receive and administer funds for the public welfare. The articles of incorporation must include the word "Michigan" and the phrase "health endowment fund" in the name of the fund. As soon as practicable after the incorporation of a fund under this subsection, the fund shall apply for and make its best effort to obtain tax-exempt status under section 501(c)(3) of the internal revenue code, 26 USC 501.  (2) The articles of incorporation of a fund must provide that the fund is organized for the following purposes:  (a) Supporting efforts that improve the quality of health care while reducing costs to residents of this state.  (b) Benefitting the health and wellness of minor children and seniors throughout this state with a significant focus in the following areas:  (i) Access to prenatal care and reduction of infant mortality rates.  (ii) Health services for foster and adopted children.  (iii) Access to healthy food.  (iv) Wellness programs and fitness programs.  (v) Access to mental health services.  (vi) Technology enhancements.  (vii) Health-related transportation needs.  (viii) Foodborne illness prevention.  (c) Awarding grants for a term not exceeding 3 years in duration for projects that will promote the purposes of the fund.  (d) Subsidizing the cost of individual medigap coverage to medicare-eligible individuals in this state who demonstrate a financial need in order to be able to purchase individual medigap coverage.  (3) The board shall establish a comprehensive and competitive process to award grants.  (4) The nonprofit corporation act, 1982 PA 162, MCL 450.2101 to 450.3192, applies to a fund. If a provision relating to a fund under this part conflicts with other state law, this part controls.  (5) If a fund is eligible to receive social mission contributions under section 220(2), the eligible fund shall implement a program to disburse money to subsidize the cost of individual medigap coverage to medicare-eligible individuals in this state who demonstrate a financial need in order to be able to purchase individual medigap coverage. The commissioner shall develop a means test to be used to determine if a medicare-eligible individual applicant is eligible for the medigap coverage subsidy provided for in this subsection and shall submit the test developed to the attorney general for approval.  (6) If a fund is eligible to receive social mission contributions under section 220(2), beginning on the first day of the third August after the fund receives its initial social mission contribution, and ending on the thirty-first day of the eighth December after the fund receives its initial social mission contribution, the fund shall disburse $120,000,000.00 to subsidize the cost of individual medigap coverage purchased by medicare-eligible individuals in this state, subject to subsection (5).  (7) A fund is a private, nonprofit corporation organized for charitable purposes and is not a state agency, governmental agency, or other political subdivision of this state. Money of a fund is held by the fund for the purposes consistent with this part and is not money of this state or a political subdivision of this state and shall not be deposited in the state treasury. A member of a board is not a public officer of this state. History: Add. 2013, Act 4, Imd. Eff. Mar. 18, 2013 Popular Name: Blue Cross-Blue ShieldPopular Name: Act 350