reglab/statecodes huggingface dataset:
2023 Michigan Compiled Laws › Chapter 550 - General Insurance Laws › Act 350 of 1980 - The Nonprofit Health Care Corporation Reform Act (550.1101 - 550.1704) › 350-1980-1 - Part 1 (550.1101...550.1108) › Section 550.1102 - Legislative Intent and Policy.

550.1102 Legislative intent and policy.
Sec. 102.
(1) It is the purpose of and intent of this act, and the policy of the legislature, to promote an appropriate distribution of health care services for all residents of this state, to promote the progress of the science and art of health care in this state, and to assure for nongroup and group subscribers, reasonable access to, and reasonable cost and quality of, health care services, in recognition that the health care financing system is an essential part of the general health, safety, and welfare of the people of this state. Each corporation subject to this act is declared to be a charitable and benevolent institution and its funds and property shall be exempt from taxation by this state or any political subdivision of this state.
(2) It is the intention of the legislature that this act shall be construed to provide for the regulation and supervision of nonprofit health care corporations by the commissioner of insurance so as to secure for all of the people of this state who apply for a certificate, the opportunity for access to health care services at a fair and reasonable price.
(3) It is the public policy of this state that, in the interest of facilitating access to health care services at a fair and reasonable price, an alternate, expeditious, and effective procedure for the resolution of issues and the maintenance of administrative appeals relative to provider class plans be established and utilized, and to that end, the provisions of this act regarding administrative review of those provider class plans shall be construed so as to minimize uncertainty and delays.
History:
1980, Act 350, Eff. Apr. 3, 1981
Popular Name:
Blue Cross-Blue Shield
Popular Name:
Act 350
2023 Michigan Compiled Laws › Chapter 550 - General Insurance Laws › Act 350 of 1980 - The Nonprofit Health Care Corporation Reform Act (550.1101 - 550.1704) › 350-1980-1 - Part 1 (550.1101...550.1108) › Section 550.1103 - Meanings of Words and Phrases.

550.1103 Meanings of words and phrases.
Sec. 103.
For the purposes of this act, the words and phrases defined in sections 104 to 108 shall have the meanings ascribed to them in those sections.
History:
1980, Act 350, Eff. Apr. 3, 1981
Popular Name:
Blue Cross-Blue Shield
Popular Name:
Act 350
2023 Michigan Compiled Laws › Chapter 550 - General Insurance Laws › Act 350 of 1980 - The Nonprofit Health Care Corporation Reform Act (550.1101 - 550.1704) › 350-1980-1 - Part 1 (550.1101...550.1108) › Section 550.1105 - Definitions; H.

550.1105 Definitions; H.
Sec. 105.
(1) "Health care benefit" means the right under a certificate to have payment made by a health care corporation for a specified health care service, regardless of whether or not the payment is made pursuant to an administrative services only or cost-plus arrangement.
(2) "Health care corporation" means a nonprofit hospital service corporation, medical care corporation, or a consolidated hospital service and medical care corporation incorporated or reincorporated under this act, or incorporated or consolidated under former Act No. 108 or 109 of the Public Acts of 1939.
(3) "Health care facility" means a facility or agency as defined in section 22104 of Act No. 368 of the Public Acts of 1978, being section 333.22104 of the Michigan Compiled Laws, and includes a home health agency, or other facility with the approval of the commissioner.
(4) "Health care provider" or "provider", except as provided in section 301(8)(a), means a health care facility; a person licensed, certified, or registered under parts 161 to 182 of Act No. 368 of the Public Acts of 1978, as amended, being sections 333.16101 to 333.18237 of the Michigan Compiled Laws; any other person or facility, with the approval of the commissioner, who or which meets the standards set by the health care corporation for all contracting providers; and, for purposes of section 414a, any person or facility who or which provides intermediate or outpatient care for substance abuse, as defined in section 414a.
(5) "Health care services" means services provided, ordered, or prescribed by a health care provider, including health and rehabilitative services and medical supplies, medical and rehabilitative services and medical supplies, medical prosthetics and devices, and medical services ancillary or incidental to the provision of those services.
History:
1980, Act 350, Eff. Apr. 3, 1981 ;-- Am. 1980, Act 430, Eff. Apr. 3, 1981
Popular Name:
Blue Cross-Blue Shield
Popular Name:
Act 350
2023 Michigan Compiled Laws › Chapter 550 - General Insurance Laws › Act 350 of 1980 - The Nonprofit Health Care Corporation Reform Act (550.1101 - 550.1704) › 350-1980-1 - Part 1 (550.1101...550.1108) › Section 550.1106 - Definitions; L to O.

550.1106 Definitions; L to O.
Sec. 106.
(1) "Large subscriber group" means a group of 10,000 or more subscribers.
(2) "Medium subscriber group" means a group of 150 or more subscribers, but less than 10,000 subscribers.
(3) "Member", except as used in parts 2 and 3, means a subscriber, a dependent of a subscriber, or any other individual entitled to receive health care benefits under a nongroup or group certificate.
(4) "Nongroup subscriber" means an individual subscriber who is not enrolled as a subscriber through any subscriber group.
(5) "Objectives" means an expected achievement level by a health care corporation of the goals provided in section 504, for a provider class. Insofar as is reasonably practicable, objectives shall be capable of quantitative measurement.
History:
1980, Act 350, Eff. Apr. 3, 1981
Popular Name:
Blue Cross-Blue Shield
Popular Name:
Act 350
2023 Michigan Compiled Laws › Chapter 550 - General Insurance Laws › Act 350 of 1980 - The Nonprofit Health Care Corporation Reform Act (550.1101 - 550.1704) › 350-1980-1 - Part 1 (550.1101...550.1108) › Section 550.1107 - Definitions; P.

550.1107 Definitions; P.
Sec. 107.
(1) "Participating provider" means a provider that has entered into a participating contract with a health care corporation and that meets the standards set by the corporation for that class of providers.
(2) "Participating contract" means an agreement, contract, or other arrangement under which a provider agrees to accept the payment of the health care corporation as payment in full for health care services or parts of health care services covered under a certificate, as provided for in section 502(1).
(3) "Person" means an individual, corporation, partnership, organization, or association.
(4) "Personal data" means a document incorporating medical or surgical history, care, treatment, or service; or any similar record, including an automated or computer accessible record, relative to a member, which is maintained or stored by a health care corporation.
(5) "Proposed rate" means any of the following:
(a) A proposed increase or decrease in the rates to be charged to nongroup subscribers.
(b) For group subscribers, any proposed changes in the methodology or definitions of any rating system, formula, component, or factor subject to prior approval by the commissioner.
(c) A proposed increase or decrease in deductible amounts or coinsurance percentages.
(d) A proposed extension of benefits, additional benefits, or a reduction or limitation in benefits.
(e) A review pursuant to section 608(2).
(6) "Provider class" means classes of providers, as defined in section 105(4), that have a provider contract or a reimbursement arrangement with a health care corporation to render health care services to subscribers, as those classes are established by the corporation.
(7) "Provider class plan" or "plan" means a document containing a reimbursement arrangement and objectives for a provider class, and, in the case of those providers with which a health care corporation contracts, provisions that are included in that contract.
(8) "Provider contract" or "contract" means an agreement between a provider and a health care corporation that contains provisions to implement the provider class plan.
History:
1980, Act 350, Eff. Apr. 3, 1981
Popular Name:
Blue Cross-Blue Shield
Popular Name:
Act 350
2023 Michigan Compiled Laws › Chapter 550 - General Insurance Laws › Act 350 of 1980 - The Nonprofit Health Care Corporation Reform Act (550.1101 - 550.1704) › 350-1980-1 - Part 1 (550.1101...550.1108) › Section 550.1108 - Definitions; R, S.

550.1108 Definitions; R, S.
Sec. 108.
(1) "Reimbursement arrangement" means policies, practices, and methods by which a health care corporation makes payments to a provider to implement the provider class plan.
(2) "Small subscriber group" means a group of less than 150 subscribers.
(3) "Subscriber" means an individual who contracts for health care benefits, either individually or through a group, with a health care corporation. Subscriber includes an individual whose contract contains an administrative services only or cost-plus arrangement authorized under section 207(1)(g).
History:
1980, Act 350, Eff. Apr. 3, 1981
Popular Name:
Blue Cross-Blue Shield
Popular Name:
Act 350
2023 Michigan Compiled Laws › Chapter 550 - General Insurance Laws › Act 350 of 1980 - The Nonprofit Health Care Corporation Reform Act (550.1101 - 550.1704) › 350-1980-2 - Part 2 (550.1201...550.1220) › Section 550.1201 - Health Care Corporation; Incorporation; Number of Persons; Payment of Cash or Other Material Benefit to Subscriber; Applicable Laws; Charitable and Benevolent Institution; Exemption From Taxation; Certificate of Authority; Health Care Benefits and Certificates.

550.1201 Health care corporation; incorporation; number of persons; payment of cash or other material benefit to subscriber; applicable laws; charitable and benevolent institution; exemption from taxation; certificate of authority; health care benefits and certificates.
Sec. 201.
(1) A health care corporation shall not be incorporated in this state except under this act.
(2) Not less than 7 persons, all of whom shall be residents of this state, may form a health care corporation under this act for the purpose of providing 1 or more health care benefits at the expense of the corporation to persons or groups of persons who become subscribers to the plan, under certificates which will entitle each subscriber to certain health care services by providers with which the corporation has contracted for that purpose.
(3) A certificate shall not provide for the payment of cash or any other material benefit to a subscriber or the estate of a subscriber on account of death, illness, or injury except where payment is made to a subscriber for health care services by a provider who has not entered into a participating contract with the corporation or to reimburse a subscriber who has made, or is obligated to make, payment directly to a provider.
(4) A health care corporation shall not be subject to the laws of this state with respect to insurance corporations, except as provided in this act. A health care corporation shall not be subject to the laws of this state with respect to corporations generally.
(5) A health care corporation subject to this act is declared to be a charitable and benevolent institution, and its funds and property shall be exempt from taxation by this state or any political subdivision of this state.
(6) A person shall not act as a health care corporation or issue a certificate except as authorized by and pursuant to a certificate of authority granted to the person by the commissioner pursuant to this act.
(7) A health care corporation shall provide only the kinds of health care benefits and certificates authorized by this act. A health care corporation shall not make or issue a certificate relative to health care benefits except as approved or otherwise authorized under this act.
History:
1980, Act 350, Eff. Apr. 3, 1981
Popular Name:
Blue Cross-Blue Shield
Popular Name:
Act 350
2023 Michigan Compiled Laws › Chapter 550 - General Insurance Laws › Act 350 of 1980 - The Nonprofit Health Care Corporation Reform Act (550.1101 - 550.1704) › 350-1980-2 - Part 2 (550.1201...550.1220) › Section 550.1201a - Formation of Health Care Corporation After January 1, 2014; Prohibition.

550.1201a Formation of health care corporation after January 1, 2014; prohibition.
Sec. 201a.
Notwithstanding section 201, a health care corporation shall not be formed in this state on or after January 1, 2014.
History:
Add. 2013, Act 4, Imd. Eff. Mar. 18, 2013
Popular Name:
Blue Cross-Blue Shield
Popular Name:
Act 350
2023 Michigan Compiled Laws › Chapter 550 - General Insurance Laws › Act 350 of 1980 - The Nonprofit Health Care Corporation Reform Act (550.1101 - 550.1704) › 350-1980-2 - Part 2 (550.1201...550.1220) › Section 550.1203 - Amendment or Restatement of Articles; Review; Approval.

550.1203 Amendment or restatement of articles; review; approval.
Sec. 203.
By action of its board of directors, a health care corporation may integrate into a single instrument the provisions of its articles of incorporation which are then in effect and operative, as theretofore amended. If the restated articles restate and integrate and also further amend the articles, they shall also be adopted by the board of directors. Any amendment or restatement of the articles shall be subject to review, approval, or both, as provided in section 202(3) or 701, as applicable.
History:
1980, Act 350, Eff. Apr. 3, 1981
Popular Name:
Blue Cross-Blue Shield
Popular Name:
Act 350
2023 Michigan Compiled Laws › Chapter 550 - General Insurance Laws › Act 350 of 1980 - The Nonprofit Health Care Corporation Reform Act (550.1101 - 550.1704) › 350-1980-2 - Part 2 (550.1201...550.1220) › Section 550.1205 - Repealed. 2003, Act 59, Eff. July 23, 2003.

550.1205 Repealed. 2003, Act 59, Eff. July 23, 2003.
Compiler's Notes:
The repealed section pertained to accounting and filing practices of health care corporation.
Popular Name:
Blue Cross-Blue Shield
Popular Name:
Act 350
2023 Michigan Compiled Laws › Chapter 550 - General Insurance Laws › Act 350 of 1980 - The Nonprofit Health Care Corporation Reform Act (550.1101 - 550.1704) › 350-1980-2 - Part 2 (550.1201...550.1220) › Section 550.1205a - Actuarial Practices and Accounting Principles; Financial Report.

550.1205a Actuarial practices and accounting principles; financial report.
Sec. 205a.
A health care corporation shall report financial information in conformity with sound actuarial practices and statutory accounting principles in the same manner as designated by the commissioner for other carriers pursuant to section 438(2) of the insurance code of 1956, 1956 PA 218, MCL 500.438. Approved permitted practices for the sole purpose of effectuating the transfer to statutory accounting principles under this section may be used by a health care corporation until January 1, 2007.
History:
Add. 2003, Act 59, Eff. July 23, 2003
Popular Name:
Blue Cross-Blue Shield
Popular Name:
Act 350
2023 Michigan Compiled Laws › Chapter 550 - General Insurance Laws › Act 350 of 1980 - The Nonprofit Health Care Corporation Reform Act (550.1101 - 550.1704) › 350-1980-2 - Part 2 (550.1201...550.1220) › Section 550.1206 - Funds, Property, and Business of Health Care Corporation; Investments; Insurance; Prepaid Health Care Benefits.

550.1206 Funds, property, and business of health care corporation; investments; insurance; prepaid health care benefits.
Sec. 206.
(1) The funds and property of a health care corporation shall be acquired, held, and disposed of only for the lawful purposes of the corporation and for the benefit of the subscribers of the corporation as a whole. A health care corporation shall only transact business, receive, collect, and disburse money, and acquire, hold, protect, and convey property, that is properly within the scope of the purposes of the corporation as specifically set forth in section 202(1)(d), for the benefit of the subscribers of the corporation as a whole, and consistent with this act.
(2) The funds of a health care corporation shall be invested only in securities permitted by the laws of this state for the investments of assets of life insurance companies, as described in chapter 9 of the insurance code of 1956, 1956 PA 218, MCL 500.901 to 500.947.
(3) Without regard to the limitation in subsection (2), up to 2% of the assets of the health care corporation may be invested in venture-type investments. For purposes of calculating adequate and unimpaired surplus under section 204a, a venture-type investment shall be carried on the books of a health care corporation at the original acquisition cost, and losses may only be realized as an offset against gains from venture-type investments. All venture-type investments under this subsection shall provide employment or capital investment primarily within this state. Each investment under this subsection is subject to prior approval by the board of directors. As used in this subsection, "venture-type investments" include:
(a) Common stock, preferred stock, limited partnerships, or similar equity interests acquired from the issuer subject to a provision barring resale without consent of the issuer for 5 years from the date of acquisition by the corporation.
(b) Unsecured debt instruments that are either convertible into equity or have equity acquisition rights. These debt instruments shall be subordinated by their terms to all borrowings of the issuer from other institutional lenders and shall have no part amortized during the first 5 years.
(4) A health care corporation shall not market or transact, as defined in sections 402a and 402b of the insurance code of 1956, 1956 PA 218, MCL 500.402a and 500.402b, any type of insurance described in chapter 6 of the insurance code of 1956, 1956 PA 218, MCL 500.600 to 500.644. This subsection shall not be construed to prohibit the provision of prepaid health care benefits.
History:
1980, Act 350, Eff. Apr. 3, 1981 ;-- Am. 2003, Act 59, Eff. July 23, 2003
Popular Name:
Blue Cross-Blue Shield
Popular Name:
Act 350
2023 Michigan Compiled Laws › Chapter 550 - General Insurance Laws › Act 350 of 1980 - The Nonprofit Health Care Corporation Reform Act (550.1101 - 550.1704) › 350-1980-2 - Part 2 (550.1201...550.1220) › Section 550.1208 - Action by Member; Complaint.

550.1208 Action by member; complaint.
Sec. 208.
(1) An action may be brought in the right of a health care corporation to procure a judgment in its favor, by a member of the corporate body.
(2) In such an action, the complaint shall allege:
(a) That the plaintiff is a member of the corporate body at the time of bringing the action, and that he or she was a member of the corporate body at the time of the transaction of which he or she complains.
(b) With particularity, the effort of the plaintiff to secure the initiation of the action by the board or the reasons for not making the effort.
History:
1980, Act 350, Eff. Apr. 3, 1981
Popular Name:
Blue Cross-Blue Shield
Popular Name:
Act 350
2023 Michigan Compiled Laws › Chapter 550 - General Insurance Laws › Act 350 of 1980 - The Nonprofit Health Care Corporation Reform Act (550.1101 - 550.1704) › 350-1980-2 - Part 2 (550.1201...550.1220) › Section 550.1209 - Action by Member; Discontinuance, Compromise, or Settlement; Notice; Expense.

550.1209 Action by member; discontinuance, compromise, or settlement; notice; expense.
Sec. 209.
An action authorized by section 208 shall not be discontinued, compromised, or settled without approval by the court having jurisdiction of the action. If the court determines that the interest of the members of the corporate body or of any component thereof will be substantially affected by the discontinuance, compromise, or settlement, the court may direct that notice, by publication or otherwise, be given to the members of the corporate body or any component thereof, whose interests it determines will be so affected. If notice is so directed to be given, the court may determine which 1 or more of the parties to the action shall bear the expense of giving the notice, in an amount which the court determines and finds reasonable under the circumstances. The amount of this expense shall be awarded as special costs of the action and shall be recoverable in the same manner as statutory taxable costs.
History:
1980, Act 350, Eff. Apr. 3, 1981
Popular Name:
Blue Cross-Blue Shield
Popular Name:
Act 350
2023 Michigan Compiled Laws › Chapter 550 - General Insurance Laws › Act 350 of 1980 - The Nonprofit Health Care Corporation Reform Act (550.1101 - 550.1704) › 350-1980-2 - Part 2 (550.1201...550.1220) › Section 550.1210 - Action by Member; Reasonable Expenses; Attorney's Fees.

550.1210 Action by member; reasonable expenses; attorney's fees.
Sec. 210.
(1) If an action brought in the right of the corporation is successful, in whole or in part, or if anything is received by the plaintiff or a claimant as a result of a judgment, compromise, or settlement of an action or claim, the court may award the plaintiff or claimant reasonable expenses, including reasonable attorney's fees, and shall direct him or her to account to the corporation for the remainder of the proceeds so received by him or her. This section does not apply to a judgment rendered for the benefit of an injured corporate body member only and limited to a recovery of the loss or damage sustained by him or her.
(2) In an action brought in the right of the corporation by a member of the corporate body, the court having jurisdiction, upon final judgment and finding that the action was brought without reasonable cause, may require the plaintiff to pay to the parties named as defendants the reasonable expenses, including fees of attorneys, incurred by them in the defense of the action.
History:
1980, Act 350, Eff. Apr. 3, 1981
Popular Name:
Blue Cross-Blue Shield
Popular Name:
Act 350
2023 Michigan Compiled Laws › Chapter 550 - General Insurance Laws › Act 350 of 1980 - The Nonprofit Health Care Corporation Reform Act (550.1101 - 550.1704) › 350-1980-2 - Part 2 (550.1201...550.1220) › Section 550.1212 - Action Without Notice or Lapse of Time Periods; Waiver; Attorney-in-Fact.

550.1212 Action without notice or lapse of time periods; waiver; attorney-in-fact.
Sec. 212.
When, under this act or the articles of incorporation or bylaws of a health care corporation or by the terms of an agreement or instrument, a health care corporation or the board of directors of the health care corporation or any committee of the board may take action after notice to any person or after lapse of a prescribed period of time, the action may be taken without notice and without lapse of the period of time, if at any time before or after the action is completed the person entitled to notice or to participate in the action to be taken or, in case of a subscriber, by his or her attorney-in-fact, submits a signed waiver of those requirements. The attorney-in-fact may not be employed by, or receive substantial income from, the health care corporation.
History:
1980, Act 350, Eff. Apr. 3, 1981
Popular Name:
Blue Cross-Blue Shield
Popular Name:
Act 350
2023 Michigan Compiled Laws › Chapter 550 - General Insurance Laws › Act 350 of 1980 - The Nonprofit Health Care Corporation Reform Act (550.1101 - 550.1704) › 350-1980-2 - Part 2 (550.1201...550.1220) › Section 550.1214 - Rate of Interest.

550.1214 Rate of interest.
Sec. 214.
A health care corporation may by agreement in writing, and not otherwise, agree to pay a rate of interest in excess of the legal rate, and in that case, the defense of usury is prohibited.
History:
1980, Act 350, Eff. Apr. 3, 1981
Popular Name:
Blue Cross-Blue Shield
Popular Name:
Act 350
2023 Michigan Compiled Laws › Chapter 550 - General Insurance Laws › Act 350 of 1980 - The Nonprofit Health Care Corporation Reform Act (550.1101 - 550.1704) › 350-1980-2 - Part 2 (550.1201...550.1220) › Section 550.1215 - Health Care Corporation as Shareholder in Other Nonprofit Corporation; Rights, Powers, Privileges, and Liabilities.

550.1215 Health care corporation as shareholder in other nonprofit corporation; rights, powers, privileges, and liabilities.
Sec. 215.
When a health care corporation, consistent with the purposes of the corporation prescribed in this act, is a shareholder in any other nonprofit corporation, its president and other officers or any of its directors may hold the office of director of the other nonprofit corporation the same as if they were individual shareholders in the other nonprofit corporation. The health care corporation, being a shareholder in the other nonprofit corporation, shall possess and exercise all the rights, powers, privileges, and liabilities of individual shareholders.
History:
1980, Act 350, Eff. Apr. 3, 1981
Popular Name:
Blue Cross-Blue Shield
Popular Name:
Act 350
2023 Michigan Compiled Laws › Chapter 550 - General Insurance Laws › Act 350 of 1980 - The Nonprofit Health Care Corporation Reform Act (550.1101 - 550.1704) › 350-1980-2 - Part 2 (550.1201...550.1220) › Section 550.1216, 550.1217 - Repealed. 2002, Act 559, Imd. Eff. Sept. 27, 2002.

550.1216, 550.1217 Repealed. 2002, Act 559, Imd. Eff. Sept. 27, 2002.
Compiler's Notes:
The repealed sections pertained to merger, consolidation, or dissolution of corporation.
Popular Name:
Blue Cross-Blue Shield
Popular Name:
Act 350
2023 Michigan Compiled Laws › Chapter 550 - General Insurance Laws › Act 350 of 1980 - The Nonprofit Health Care Corporation Reform Act (550.1101 - 550.1704) › 350-1980-2 - Part 2 (550.1201...550.1220) › Section 550.1218 - Health Care Corporation; Prohibited Actions.

550.1218 Health care corporation; prohibited actions.
Sec. 218.
A health care corporation shall not do any of the following:
(a) Take any action to change its nonprofit status.
(b) Except as otherwise provided in section 220, dissolve, merge, consolidate, mutualize, or take any other action that results in a change in direct or indirect control of the health care corporation or sell, transfer, lease, exchange, option, or convey assets that results in a change in direct or indirect control of the health care corporation.
History:
Add. 2002, Act 559, Imd. Eff. Sept. 27, 2002 ;-- Am. 2013, Act 4, Imd. Eff. Mar. 18, 2013
Popular Name:
Blue Cross-Blue Shield
Popular Name:
Act 350
2023 Michigan Compiled Laws › Chapter 550 - General Insurance Laws › Act 350 of 1980 - The Nonprofit Health Care Corporation Reform Act (550.1101 - 550.1704) › 350-1980-2 - Part 2 (550.1201...550.1220) › Section 550.1219 - Provisions Superseded.

550.1219 Provisions superseded.
Sec. 219.
A nonprofit health care corporation is subject to chapter 37 of the insurance code of 1956, 1956 PA 218, MCL 500.3701 to 500.3723. To the extent that a provision of this act concerning health coverage, including, but not limited to, premiums, rates, filings, and coverages, conflicts with chapter 37 of the insurance code of 1956, 1956 PA 218, MCL 500.3701 to 500.3723, chapter 37 of the insurance code of 1956, 1956 PA 218, MCL 500.3701 to 500.3723, supersedes this act.
History:
Add. 2003, Act 59, Eff. July 23, 2003
Popular Name:
Blue Cross-Blue Shield
Popular Name:
Act 350
2023 Michigan Compiled Laws › Chapter 550 - General Insurance Laws › Act 350 of 1980 - The Nonprofit Health Care Corporation Reform Act (550.1101 - 550.1704) › 350-1980-3 - Part 3 (550.1301...550.1313) › Section 550.1302 - Bylaws Generally.

550.1302 Bylaws generally.
Sec. 302.
(1) The board of directors shall adopt initial bylaws and may amend or repeal those bylaws or adopt new bylaws, subject to the prior approval or certification by the attorney general. The bylaws may contain any provision for the regulation and management of the affairs of the health care corporation not inconsistent with the articles of incorporation, this act, or any other applicable provision of law.
(2) The initial bylaws, and any new bylaws, amendments, or repealers shall be submitted to the attorney general for review and approval. The attorney general shall approve the initial bylaws, new bylaws, amendments, or repealers if the attorney general determines that they comply with this act.
(3) If the attorney general disapproves all or any part of the initial bylaws, new bylaws, amendments, or repealers, he or she shall return them to the board with a written statement setting forth the reasons for the disapproval and any recommendations for change which he or she may wish to suggest, not later than 30 days following their receipt. Bylaws, amendments, and repealers not returned to the health care corporation within this 30-day period shall be considered to comply with this act and shall be considered approved.
History:
1980, Act 350, Eff. Apr. 3, 1981
Popular Name:
Blue Cross-Blue Shield
Popular Name:
Act 350
2023 Michigan Compiled Laws › Chapter 550 - General Insurance Laws › Act 350 of 1980 - The Nonprofit Health Care Corporation Reform Act (550.1101 - 550.1704) › 350-1980-3 - Part 3 (550.1301...550.1313) › Section 550.1305 - Establishment and Composition of Corporate Body; Service of Members on Committees; Membership on Board of Directors.

550.1305 Establishment and composition of corporate body; service of members on committees; membership on board of directors.
Sec. 305.
(1) A health care corporation may establish a corporate body. The corporate body shall consist of individuals selected in the same manner as individuals are selected to serve as nonpublic members on the board of directors. The size of the corporate body shall be such that, for each nonpublic voting director on the board of directors of the corporation, there are 2 members of the corporate body. The 4 public members selected pursuant to section 301(2) shall be considered to be members of the corporate body as well as members of the board of directors. An additional 4 public members shall be appointed to the corporate body by the governor by and with the advice and consent of the senate, 2 of whom shall be retired individuals 62 years of age or older.
(2) Members of the corporate body may serve on committees of the board of directors. A member of the corporate body may be selected for membership on the board of directors, provided that the selection is made in accordance with the provisions of this part governing the selection of voting directors of the board.
History:
1980, Act 350, Eff. Apr. 3, 1981
Popular Name:
Blue Cross-Blue Shield
Popular Name:
Act 350
2023 Michigan Compiled Laws › Chapter 550 - General Insurance Laws › Act 350 of 1980 - The Nonprofit Health Care Corporation Reform Act (550.1101 - 550.1704) › 350-1980-3 - Part 3 (550.1301...550.1313) › Section 550.1306 - Effect of Common Directorship, Officership, or Interest on Validity of Contract or Other Transaction; Burden of Establishing Validity of Contract; Exclusion of Common or Interested Directors in Determination of Quorum; Compensation of Directors; Bylaws Regarding Conflict of Interest.

550.1306 Effect of common directorship, officership, or interest on validity of contract or other transaction; burden of establishing validity of contract; exclusion of common or interested directors in determination of quorum; compensation of directors; bylaws regarding conflict of interest.
Sec. 306.
(1) A contract or other transaction between a health care corporation and 1 or more of its directors or officers, or between a health care corporation and any other corporation, firm, or association of any type or kind in which 1 or more of its directors or officers are directors or officers, or are otherwise interested, is not void or voidable solely because of such common directorship, officership, or interest, or solely because the directors are present at the meeting of the board or committee thereof which authorizes or approves the contract or transaction, if all of the following conditions are satisfied:
(a) The contract or other transaction is fair and reasonable to the corporation when it is authorized, approved, or ratified.
(b) The material facts as to the officer's or director's relationship or interest and as to the contract or transaction are disclosed or known to the board or committee, and the board or committee authorizes, approves, or ratifies the contract or transaction by a vote sufficient for the purpose. The conditions of this subdivision shall be considered satisfied only if the officer or director has announced the potential conflict prior to the vote, the minutes of the meeting reflect that announcement, and the officer or director abstained from the vote.
(2) When the validity of a contract described in subsection (1) is questioned, the burden of establishing its validity on the grounds prescribed is upon the director, officer, corporation, firm, or association asserting its validity.
(3) Common or interested directors shall not be counted in determining the presence of a quorum at a board or committee meeting at the time a contract or transaction described in subsection (1) is authorized, approved, or ratified.
(4) The board, by affirmative vote of a majority of directors in office and irrespective of any personal interest of any of them, may establish reasonable compensation of directors for services to the health care corporation as directors or officers of the health care corporation.
(5) The bylaws of a health care corporation may include provisions regarding conflict of interest which are more stringent than this section.
History:
1980, Act 350, Eff. Apr. 3, 1981
Popular Name:
Blue Cross-Blue Shield
Popular Name:
Act 350
2023 Michigan Compiled Laws › Chapter 550 - General Insurance Laws › Act 350 of 1980 - The Nonprofit Health Care Corporation Reform Act (550.1101 - 550.1704) › 350-1980-3 - Part 3 (550.1301...550.1313) › Section 550.1307 - Advisory Councils; Committees of Board of Directors; Bylaws Regarding Membership and Emergency Meetings and Actions.

550.1307 Advisory councils; committees of board of directors; bylaws regarding membership and emergency meetings and actions.
Sec. 307.
The board of directors may establish those advisory councils and, unless otherwise provided in the articles of incorporation or bylaws, those committees it considers necessary to perform its duties. Members of the corporate body may serve on committees of the board of directors. With respect to committees of the board, the bylaws shall include provisions regarding all of the following:
(a) Provisions which assure that the membership of each committee provides for representation of all of the components of directors, as defined in the bylaws, to the greatest extent practicable.
(b) Provisions regarding emergency meetings of the executive committee of the health care corporation, and action by that committee on behalf of the board in cases of emergency, as defined by the bylaws.
History:
1980, Act 350, Eff. Apr. 3, 1981
Popular Name:
Blue Cross-Blue Shield
Popular Name:
Act 350
2023 Michigan Compiled Laws › Chapter 550 - General Insurance Laws › Act 350 of 1980 - The Nonprofit Health Care Corporation Reform Act (550.1101 - 550.1704) › 350-1980-3 - Part 3 (550.1301...550.1313) › Section 550.1308 - Committees of Board of Directors; Powers and Authority; Prohibited Activities; Emergency Actions.

550.1308 Committees of board of directors; powers and authority; prohibited activities; emergency actions.
Sec. 308.
(1) To the extent provided by resolution of the board or in the bylaws or articles, a committee established pursuant to section 307 may exercise the powers and authority of the board in management of the business and affairs of the health care corporation. The board shall review and may modify subject to the rights of third parties any action or decision of a committee. A committee shall not do any of the following:
(a) Amend the articles of incorporation.
(b) Adopt an agreement of merger or consolidation.
(c) Authorize the sale, lease, or exchange of all or substantially all of the corporation's property and assets.
(d) Approve, adopt, or amend provider contracts, provider class plans, rates charged to subscribers, or a certificate.
(e) Amend the bylaws of the corporation.
(f) Fill vacancies on the board.
(g) Fix compensation of the directors or officers.
(h) Perform other similar acts of a final or binding nature with respect to the business of the corporation.
(2) This section shall not prohibit emergency actions by the executive committee on behalf of the board, as authorized in the bylaws of the health care corporation.
History:
1980, Act 350, Eff. Apr. 3, 1981
Popular Name:
Blue Cross-Blue Shield
Popular Name:
Act 350
2023 Michigan Compiled Laws › Chapter 550 - General Insurance Laws › Act 350 of 1980 - The Nonprofit Health Care Corporation Reform Act (550.1101 - 550.1704) › 350-1980-3 - Part 3 (550.1301...550.1313) › Section 550.1309 - Officers and Assistants; Selection; Restriction; Authority and Duties; Removal; Contractual Rights; Bond; Vacancies; Compensation; Pension.

550.1309 Officers and assistants; selection; restriction; authority and duties; removal; contractual rights; bond; vacancies; compensation; pension.
Sec. 309.
(1) The board of directors shall select the officers of the health care corporation and a chairperson, vice-chairperson, and other board officers and assistants as the board considers necessary. However, an officer shall not execute, acknowledge, or verify an instrument in more than 1 capacity. Officers shall have only the authority, and assistants shall perform only those duties, in the management of the property and affairs of the corporation, as is provided in the bylaws or delegated to the officers and assistants by the board of directors, consistent with the bylaws. An officer or assistant may be removed by the board of directors with or without cause, subject to the contract rights, if any, of the officer or assistant. The selection of an officer or assistant does not of itself create contract rights. The board of directors may secure the fidelity of any or all of the officers by bond or otherwise. Unless otherwise provided in the articles or bylaws, the board of directors may fill vacancies in an office described in this subsection which occur for any reason.
(2) A health care corporation shall not pay a salary, compensation, or emolument to a director or officer unless the payment is first authorized by the board of directors of the corporation. A director, officer, assistant, or employee shall not be compensated unreasonably.
(3) A health care corporation shall not grant a pension to an officer or director, or to a member of the family of an officer or director after the death of the officer or director. However, the corporation, pursuant to the terms of a retirement plan adopted by the board of directors of the corporation and approved by the commissioner, may provide for any person who is or has been a salaried employee or officer of the corporation, a pension payable upon retirement, as provided in the approved retirement plan, and life insurance benefits payable at death.
History:
1980, Act 350, Eff. Apr. 3, 1981
Popular Name:
Blue Cross-Blue Shield
Popular Name:
Act 350
2023 Michigan Compiled Laws › Chapter 550 - General Insurance Laws › Act 350 of 1980 - The Nonprofit Health Care Corporation Reform Act (550.1101 - 550.1704) › 350-1980-3 - Part 3 (550.1301...550.1313) › Section 550.1310 - Fiduciary Duties; Scope and Manner of Discharge; Removal of Director for Breach of Fiduciary Duty; Notice and Hearing.

550.1310 Fiduciary duties; scope and manner of discharge; removal of director for breach of fiduciary duty; notice and hearing.
Sec. 310.
(1) With respect to management of the affairs and property of the health care corporations, and in the selection, supervision, and control of committees of the board, employees of the health care corporation, and officers, each director and officer, and the composite board, shall exercise the duties of a fiduciary toward the health care corporation and the subscribers of the health care corporation as a whole, and shall discharge his or her duties with the degree of diligence, care, and skill which an ordinarily prudent person would exercise under the same or similar circumstances in a like position. In discharging his or her duties, a director or officer, when acting in good faith, may rely upon the opinion of counsel for the corporation, upon the report of an independent appraiser selected with reasonable care by the board, or upon financial statements of the corporation represented to the director or officer to be correct by the president or the officer of the corporation having charge of its books of account, or stated in a written report by an independent public or certified public accountant or firm of such accountants fairly to reflect the financial condition of the corporation.
(2) After notice and a hearing before the board, a director may be removed from the board by a vote of 2/3 of the directors selected and serving on the board for a breach of fiduciary duty.
History:
1980, Act 350, Eff. Apr. 3, 1981
Popular Name:
Blue Cross-Blue Shield
Popular Name:
Act 350
2023 Michigan Compiled Laws › Chapter 550 - General Insurance Laws › Act 350 of 1980 - The Nonprofit Health Care Corporation Reform Act (550.1101 - 550.1704) › 350-1980-3 - Part 3 (550.1301...550.1313) › Section 550.1311 - Liability for Misapplication or Misuse of Corporate Money or Property.

550.1311 Liability for misapplication or misuse of corporate money or property.
Sec. 311.
Each director or officer of a health care corporation shall be individually liable for the misapplication or misuse of corporate money or property caused through the neglect or failure of that director or officer to discharge his or her duties in compliance with the standards prescribed in section 310, or through wilful violation of this act or other laws governing the health care corporation.
History:
1980, Act 350, Eff. Apr. 3, 1981
Popular Name:
Blue Cross-Blue Shield
Popular Name:
Act 350
2023 Michigan Compiled Laws › Chapter 550 - General Insurance Laws › Act 350 of 1980 - The Nonprofit Health Care Corporation Reform Act (550.1101 - 550.1704) › 350-1980-3 - Part 3 (550.1301...550.1313) › Section 550.1312 - Action for Failure to Perform Duties; Commencement.

550.1312 Action for failure to perform duties; commencement.
Sec. 312.
An action against a director or officer for failure to perform the duties imposed by this act shall be commenced within 3 years after the cause of action has accrued, or within 2 years after the time when the cause of action is discovered, or should reasonably have been discovered, by a person complaining of the failure to perform, whichever occurs sooner.
History:
1980, Act 350, Eff. Apr. 3, 1981
Popular Name:
Blue Cross-Blue Shield
Popular Name:
Act 350
2023 Michigan Compiled Laws › Chapter 550 - General Insurance Laws › Act 350 of 1980 - The Nonprofit Health Care Corporation Reform Act (550.1101 - 550.1704) › 350-1980-3 - Part 3 (550.1301...550.1313) › Section 550.1313 - False Statement as Misdemeanor; Liability for False Statement or Report; Commencement of Action for Civil Liability.

550.1313 False statement as misdemeanor; liability for false statement or report; commencement of action for civil liability.
Sec. 313.
(1) Except with respect to statements which are subject to prosecution for perjury, as defined in section 423 of Act No. 328 of the Public Acts of 1931, being section 750.423 of the Michigan Compiled Laws, a person, or an agent, director, or officer of a health care corporation, who knowingly makes any false oral or written statement as to a material fact, in or with respect to a report required by this act, or in the course of a hearing or examination held pursuant to this act, is guilty of a misdemeanor. In addition, the person, agent, director, or officer knowingly making the false statement and each person, agent, director, or officer knowingly authorizing, signing, or making the false report shall be jointly and severally personally liable to any person who has become a creditor of the health care corporation upon the faith of the false statement or the false report.
(2) An action for the civil liability imposed by this section shall be commenced within 2 years after discovery of the false statement or within 6 years after the report has been made by the person, agent, director, or officer of the health care corporation, whichever is sooner.
History:
1980, Act 350, Eff. Apr. 3, 1981
Popular Name:
Blue Cross-Blue Shield
Popular Name:
Act 350
2023 Michigan Compiled Laws › Chapter 550 - General Insurance Laws › Act 350 of 1980 - The Nonprofit Health Care Corporation Reform Act (550.1101 - 550.1704) › 350-1980-4 - Part 4 (550.1400...550.1439) › Section 550.1400 - Use of Most Favored Nation Clause in Provider Contract.

550.1400 Use of most favored nation clause in provider contract.
Sec. 400.
(1) Notwithstanding any provision of this act to the contrary, this section applies to the use of a most favored nation clause in a provider contract on and after February 1, 2013.
(2) Subject to subsection (3), beginning February 1, 2013, a health care corporation shall not use a most favored nation clause in any provider contract, including a provider contract in effect on February 1, 2013, unless the most favored nation clause has been filed with and approved by the commissioner. Subject to subsection (3), beginning February 1, 2013, a health care corporation shall not enforce a most favored nation clause in any provider contract without the prior approval of the commissioner.
(3) Beginning January 1, 2014, a health care corporation shall not use a most favored nation clause in any provider contract, including a provider contract in effect on January 1, 2014.
(4) As used in this section, "most favored nation clause" means a clause that does any of the following:
(a) Prohibits, or grants a contracting health care corporation an option to prohibit, a provider from contracting with another party to provide health care services at a lower rate than the payment or reimbursement rate specified in the contract with the health care corporation.
(b) Requires, or grants a contracting health care corporation an option to require, a provider to accept a lower payment or reimbursement rate if the provider agrees to provide health care services to any other party at a lower rate than the payment or reimbursement rate specified in the contract with the health care corporation.
(c) Requires, or grants a contracting health care corporation an option to require, termination or renegotiation of an existing provider contract if a provider agrees to provide health care services to any other party at a lower rate than the payment or reimbursement rate specified in the contract with the health care corporation.
(d) Requires a provider to disclose, to the health care corporation or its designee, the provider's contractual payment or reimbursement rates with other parties.
History:
Add. 2013, Act 4, Imd. Eff. Mar. 18, 2013
Popular Name:
Blue Cross-Blue Shield
Popular Name:
Act 350
2023 Michigan Compiled Laws › Chapter 550 - General Insurance Laws › Act 350 of 1980 - The Nonprofit Health Care Corporation Reform Act (550.1101 - 550.1704) › 350-1980-4 - Part 4 (550.1400...550.1439) › Section 550.1401a - Health Care Service Rendered by Dentist; Benefits or Reimbursement; “Dentist” Defined; Certificates to Which Section Applicable.

550.1401a Health care service rendered by dentist; benefits or reimbursement; “dentist” defined; certificates to which section applicable.
Sec. 401a.
(1) If a group or nongroup certificate of a health care corporation provides for health care benefits for a health care service, those benefits or reimbursement for the provision of the service shall not be denied because the service was rendered by a dentist, provided the service was legally performed.
(2) As used in this section, "dentist" means an individual licensed under part 166 of Act No. 368 of the Public Acts of 1978, being sections 333.16601 to 333.16647 of the Michigan Compiled Laws.
(3) This section shall apply only with respect to certificates which are issued or renewed on or after the effective date of this section, and shall apply notwithstanding any certificate provision to the contrary.
History:
Add. 1982, Act 290, Imd. Eff. Oct. 7, 1982
Popular Name:
Blue Cross-Blue Shield
Popular Name:
Act 350