State Law

Michigan Compiled Laws-Chapter 500. Insurance Code of 1956-Chapter 34. Disability Insurance Policies

07/07/2020 Michigan Section 500.3477

Use of financial incentive or payment to act as inducement to deny, reduce, limit, or delay services; prohibition; exception

Prohibited financial incentives

(1) An insurer shall not use any financial incentive or make any payment to a health professional that acts directly or indirectly as an inducement to deny, reduce, limit, or delay specific medically necessary and appropriate services.

(2) Subsection (1) does not prohibit payment arrangements that are not tied to specific medical decisions or prohibit the use of risk sharing as otherwise authorized in this chapter.