(The Center Square) – Michigan House Republicans have proposed a package of bills meant to reduce health care costs.
This comes as new polling shows rising medical costs remains one of voters' top concerns.
The four-bill package, House Bills 6116-6119, was unveiled last week by a group of House Republicans, including House Speaker Matt Hall, R-Richland Township.
The legislation would create a state hospital pricing board, limit hospital price increases, restrict health care consolidation, and prohibit certain physician non-compete agreements.
“Hospital charges are out of control right now, and it's all of us who are paying the price,” said state Rep. Joe Aragona, R-Clinton Township and one of the sponsors. “Our plan gives people more peace of mind about their family's finances and makes life more affordable for everyone in Michigan.”
Under the proposal, nonprofit hospitals would be required to reduce prices by 10% when the law takes effect. Hospitals could only increase prices if they demonstrate higher costs for providing care, such as increased labor or medication expenses.
Price increases would be capped at the rate of inflation.
The legislation would also establish a five-member Hospital Cost Review Board tasked with reviewing hospital budgets, financial reports, service data, and proposed rate increases. The board would be appointed by the governor and legislative leaders.
Hospitals found in violation of the law would have 30 days to correct the issue or face penalties equal to the value of their nonprofit tax exemption.
A separate bill, sponsored by state Rep. Mike Harris, R-Waterford, would direct revenue collected from penalties into a grant program supporting rural health care access.
“If the state is collecting revenue from corruption in the healthcare system, we have to ensure those dollars are reinvested to support the most vulnerable parts of our healthcare infrastructure,” Harris said.
A proposal from state Rep. Jay DeBoyer, R-Clay Township, would require hospitals seeking mergers or acquisitions to obtain approval from the new board.
“This plan will prevent health care deserts and instances where people are forced to travel long distances just to be able to access care,” DeBoyer said.“More access to care and lower costs. That’s what people we all represent are calling for and that these measures will deliver.”
The final bill that is a part of the package would prohibit hospital systems with more than $2 billion in annual revenue from requiring physicians to sign non-compete agreements, except in limited circumstances involving other large hospital systems. This is an attempt to increase access to healthcare.
The package comes as health care affordability continues to rank among Americans' biggest concerns.
The Michigan Health Purchasers Coalition, which represents employers that provide health coverage, has highlighted some of the factors impacting rising health care costs.
“The impact of Michigan hospitals’ consolidation and secret mark-up programs are devastating for patients and employers who provide health insurance coverage,” said Bret Jackson, president of the alliance. “Voters across Michigan and across the United States are telling anyone who will listen that there is no more urgent crisis than health care affordability. We’re asking candidates, lawmakers, and policymakers to listen to local patients and tackle the drivers behind exploding costs.”
Jackson has also applauded the House bill package.
“The House package . . . is a bold solution taking aim at one of the biggest drivers of the affordability crisis—hospital prices,” Jackson said. “We look forward to reviewing the bills and working with all members of the legislature to ensure working families, employers, and hospitals can all grow and prosper in Michigan.”
Republicans have brought forward other bills also aimed at reducing health care costs.
State Sen. Michael Webber, R-Rochester Hills, recently proposed creating a task force to study the impact of state insurance mandates on premiums.
All of the bills in the House Republican package has been referred to the House Government Operations Committee for further consideration. They have yet to receive support from House Democrats, which could make passage through the Democrat-led Senate difficult.
