Bill Text: MI SB0993 | 2013-2014 | 97th Legislature | Engrossed
Bill Title: Insurance; health; interstate health care compact; provide for. Creates new act.
Spectrum: Partisan Bill (Republican 8-0)
Status: (Engrossed - Dead) 2014-12-17 - Referred To Second Reading [SB0993 Detail]
Download: Michigan-2013-SB0993-Engrossed.html
SB-0993, As Passed Senate, December 11, 2014
SENATE BILL No. 993
June 12, 2014, Introduced by Senators MARLEAU, JONES, GREEN, KAHN, BOOHER, CASPERSON, HANSEN and NOFS and referred to the Committee on Insurance.
A bill to enter into the interstate health care compact; and
for related purposes.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the
"interstate health care compact".
Sec. 3. The interstate health care compact is enacted into law
and entered into with all jurisdictions legally joining in the
compact, in the form substantially as follows:
The Health Care Compact
Whereas, the separation of powers, both between the branches
of the federal government and between federal and state authority,
is essential to the preservation of individual liberty;
Whereas, the constitution creates a federal government of
limited and enumerated powers, and reserves to the states or to the
people those powers not granted to the federal government;
Whereas, the federal government has enacted many laws that
have preempted state laws with respect to health care, and placed
increasing strain on state budgets, impairing other
responsibilities such as education, infrastructure, and public
safety;
Whereas, the member states seek to protect individual liberty
and personal control over health care decisions, and believe the
best method to achieve these ends is by vesting regulatory
authority over health care in the states;
Whereas, by acting in concert, the member states may express
and inspire confidence in the ability of each member state to
govern health care effectively; and
Whereas, the member states recognize that consent of congress
may be more easily secured if the member states collectively seek
consent through an interstate compact;
Now therefore, the member states hereto resolve, and by the
adoption into law under their respective state constitutions of
this health care compact, agree, as follows:
Sec. 1. As used in this compact, unless the context clearly
indicates otherwise:
(a) "Commission" means the interstate advisory health care
commission.
(b) "Effective date" means the date upon which this compact
shall become effective for purposes of the operation of state and
federal law in a member state, which shall be the later of:
(i) the date upon which this compact shall be adopted under the
laws of the member state, and
(ii) the date upon which this compact receives the consent of
congress pursuant to article I, section 10, of the United States
constitution, after at least 2 member states adopt this compact.
(c) "Health care" means care, services, supplies, or plans
related to the health of an individual and includes but is not
limited to:
(i) preventive, diagnostic, therapeutic, rehabilitative,
maintenance, or palliative care and counseling, service,
assessment, or procedure with respect to the physical or mental
condition or functional status of an individual or that affects the
structure or function of the body, and
(ii) sale or dispensing of a drug, device, equipment, or other
item in accordance with a prescription, and
(iii) an individual or group plan that provides, or pays the
cost of, care, services, or supplies related to the health of an
individual, except any care, services, supplies, or plans provided
by the United States department of defense and United States
department of veterans affairs, or provided to Native Americans.
(d) "Member state" means a state that is signatory to this
compact and has adopted it under the laws of that state.
(e) "Member state base funding level" means a number equal to
the total federal spending on health care in the member state
during federal fiscal year 2010. On or before the effective date,
each member state shall determine the member state base funding
level for its state, and that number shall be binding upon that
member state. The preliminary estimate of member state base funding
level for the state of Michigan is $29,466,000,000.00.
(f) "Member state current year funding level" means the member
state base funding level multiplied by the member state current
year population adjustment factor multiplied by the current year
inflation adjustment factor.
(g) "Member state current year population adjustment factor"
means the average population of the member state in the current
year less the average population of the member state in federal
fiscal year 2010, divided by the average population of the member
state in federal fiscal year 2010, plus 1. Average population in a
member state shall be determined by the United States census
bureau.
(h) "Current year inflation adjustment factor" means the total
gross domestic product deflator in the current year divided by the
total gross domestic product deflator in federal fiscal year 2010.
Total gross domestic product deflator shall be determined by the
bureau of economic analysis of the United States department of
commerce.
Sec. 2. The member states shall take joint and separate action
to secure the consent of the United States congress to this compact
in order to return the authority to regulate health care to the
member states consistent with the goals and principles articulated
in this compact. The member states shall improve health care policy
within their respective jurisdictions and according to the judgment
and discretion of each member state.
Sec. 3. The legislatures of the member states have the primary
responsibility to regulate health care in their respective states.
Sec. 4. Each member state, within its state, may suspend by
legislation the operation of all federal laws, rules, regulations,
and orders regarding health care that are inconsistent with the
laws and regulations adopted by the member state pursuant to this
compact. Federal and state laws, rules, regulations, and orders
regarding health care will remain in effect unless a member state
expressly suspends them pursuant to its authority under this
compact. For any federal law, rule, regulation, or order that
remains in effect in a member state after the effective date, that
member state shall be responsible for the associated funding
obligations in its state.
Sec. 5. (1) Each federal fiscal year, each member state shall
have the right to federal money up to an amount equal to its member
state current year funding level for that federal fiscal year,
funded by congress as mandatory spending and not subject to annual
appropriation, to support the exercise of member state authority
under this compact. This funding shall not be conditional on any
action of or regulation, policy, law, or rule being adopted by the
member state.
(2) By the start of each federal fiscal year, congress shall
establish an initial member state current year funding level for
each member state, based upon reasonable estimates. The final
member state current year funding level shall be calculated, and
funding shall be reconciled by the United States congress based
upon information provided by each member state and audited by the
United States government accountability office.
Sec. 6. (1) The interstate advisory health care commission is
established. The commission consists of members appointed by each
member state through a process to be determined by each member
state. A member state may not appoint more than 2 members to the
commission and may withdraw membership from the commission at any
time. Each commission member is entitled to 1 vote. The commission
shall not act unless a majority of the members are present, and no
action shall be binding unless approved by a majority of the
commission's total membership.
(2) The commission may elect from among its membership a
chairperson. The commission may adopt and publish bylaws and
policies that are not inconsistent with this compact. The
commission shall meet at least once a year, and may meet more
frequently.
(3) The commission may study issues of health care regulation
that are of particular concern to the member states. The commission
may make nonbinding recommendations to the member states. The
legislatures of the member states may consider these
recommendations in determining the appropriate health care policies
in their respective states.
(4) The commission shall collect information and data to
assist the member states in their regulation of health care,
including assessing the performance of various state health care
programs and compiling information on the prices of health care.
The commission shall make this information and data available to
the legislatures of the member states. Notwithstanding any other
provision in this compact, no member state shall disclose to the
commission the health information of any individual, nor shall the
commission disclose the health information of any individual.
(5) The commission shall be funded by the member states as
agreed to by the member states. The commission shall have the
responsibilities and duties as may be conferred upon it by
subsequent action of the respective legislatures of the member
states in accordance with the terms of this compact.
(6) The commission shall not take any action within a member
state that contravenes any state law of that member state.
Sec. 7. This compact shall be effective on its adoption by at
least 2 member states and consent of the United States congress.
This compact shall be effective unless the United States congress,
in consenting to this compact, alters the fundamental purposes of
this compact, which are:
(a) To secure the right of the member states to regulate
health care in their respective states pursuant to this compact and
to suspend the operation of any conflicting federal laws, rules,
regulations, and orders within their states; and
(b) To secure federal funding for member states that choose to
invoke their authority under this compact, as prescribed by section
5 above.
Sec. 8. The member states, by unanimous agreement, may amend
this compact from time to time without the prior consent or
approval of congress and any amendment shall be effective unless,
within 1 year, the congress disapproves that amendment. Any state
may join this compact after the date on which congress consents to
the compact by adoption into law under its state constitution.
Sec. 9. Any member state may withdraw from this compact by
adopting a law to that effect, but no such withdrawal shall take
effect until 6 months after the governor of the withdrawing member
state has given notice of the withdrawal to the other member
states. A withdrawing state shall be liable for any obligations
that it may have incurred prior to the date on which its withdrawal
becomes effective. This compact shall be dissolved upon the
withdrawal of all but 1 of the member states.
