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Michigan Legislature· HB 4726PA 45 of 2025

Health facilities: county medical care facilities; maintenance of effort reimbursement; extend sunset, the official text

Shown verbatim: the complete text as captured from the official page posted by the Michigan Legislature, fetched 2026-08-29. This is the chaptered version. The official bill page.
Act
No. 45

Public
Acts of 2025

Approved
by the Governor

December
23, 2025

Filed
with the Secretary of State

December
23, 2025

EFFECTIVE
DATE:  December 23, 2025

state of michigan

103rd Legislature

Regular session of 2025

Introduced by Reps. Bierlein, Borton, Frisbie and Martin

ENROLLED HOUSE BILL No. 4726

AN ACT to amend 1939 PA 280,
entitled “An act to protect the welfare of the people of this state; to provide
general assistance, hospitalization, infirmary and medical care to poor or
unfortunate persons; to provide for compliance by this state with the social
security act; to provide protection, welfare and services to aged persons,
dependent children, the blind, and the permanently and totally disabled; to
administer programs and services for the prevention and treatment of
delinquency, dependency and neglect of children; to create a state department
of social services; to prescribe the powers and duties of the department; to
provide for the interstate and intercounty transfer of dependents; to create
county and district departments of social services; to create within certain
county departments, bureaus of social aid and certain divisions and offices
thereunder; to prescribe the powers and duties of the departments, bureaus and
officers; to provide for appeals in certain cases; to prescribe the powers and
duties of the state department with respect to county and district departments;
to prescribe certain duties of certain other state departments, officers, and
agencies; to make an appropriation; to prescribe penalties for the violation of
the provisions of this act; and to repeal certain parts of this act on specific
dates,” by amending section 109 (MCL 400.109), as amended by 2024 PA 248.

The People of the State of
Michigan enact:

Sec.
109. (1) An eligible individual may receive the following medical services
under this act:

(a) Hospital services that an eligible individual may receive
consist of medical, surgical, or obstetrical care, together with necessary
drugs, X-rays, physical therapy, prosthesis, transportation, and nursing care
incident to the medical, surgical, or obstetrical care. The period of inpatient
hospital service must be the minimum period necessary in this type of facility
for the proper care and treatment of the individual. Necessary hospitalization
to provide dental care must be provided if certified by the attending dentist
with the approval of the department. An individual who is receiving medical
treatment as an inpatient because of a diagnosis of mental disease may receive
service under this section, notwithstanding the mental health code, 1974 PA
258, MCL 330.1001 to 330.2106. The department must pay for hospital services
according to the state plan for medical assistance adopted under section 10 and
approved by the United States Department of Health and Human Services.

(b) Physician services authorized by the department. The
services may be furnished in the physician’s office, the eligible individual’s
home, a medical institution, or elsewhere in case of emergency. A physician
must be paid a reasonable charge for the service rendered. The department must
determine reasonable charges. Reasonable charges must not be more than those
paid in this state for services rendered under title XVIII.

(c) Nursing home services in a state licensed nursing home, a
medical care facility, or other facility or identifiable unit of that facility,
certified by the appropriate authority as meeting established standards for a
nursing home under the laws and rules of this state and the United States
Department of Health and Human Services, to the extent found necessary by the
attending physician, dentist, or certified Christian Science practitioner. An
eligible individual may receive nursing home services in an extended care
services program established under section 22210 of the public health code,
1978 PA 368, MCL 333.22210, to the extent found necessary by the attending
physician when the combined length of stay in the acute care bed and short-term
nursing care bed exceeds the average length of stay for Medicaid hospital
diagnostic related group reimbursement. The department shall not make a final
payment under title XIX for benefits available under title XVIII without
documentation that title XVIII claims have been filed and denied. The
department must pay for nursing home services according to the state plan for
medical assistance adopted according to section 10 and approved by the United
States Department of Health and Human Services. A county must reimburse a
county maintenance of effort rate determined on an annual basis for each
patient day of Medicaid nursing home services provided to eligible individuals
in long-term care facilities owned by the county and licensed to provide
nursing home services. For purposes of determining rates and costs described in
this subdivision, all of the following apply:

(i) For county-owned facilities with per
patient day updated variable costs exceeding the variable cost limit for the
county facility, county maintenance of effort rate means 45% of the difference
between per patient day updated variable cost and the concomitant nursing
home-class variable cost limit, the quantity offset by the difference between
per patient day updated variable cost and the concomitant variable cost limit
for the county facility. The county rate must not be less than zero.

(ii) For county-owned facilities with per
patient day updated variable costs not exceeding the variable cost limit for
the county facility, county maintenance of effort rate means 45% of the
difference between per patient day updated variable cost and the concomitant
nursing home class variable cost limit.

(iii) For county-owned facilities with per
patient day updated variable costs not exceeding the concomitant nursing home
class variable cost limit, the county maintenance of effort rate must equal
zero.

(iv) For the purposes of this section: “per
patient day updated variable costs and the variable cost limit for the county
facility” must be determined according to the state plan for medical
assistance; for freestanding county facilities the “nursing home class variable
cost limit” must be determined according to the state plan for medical
assistance and for hospital attached county facilities the “nursing class
variable cost limit” must be determined according to the state plan for medical
assistance plus $5.00 per patient day; and “freestanding” and “hospital
attached” must be determined according to the federal regulations.

(v) If the county maintenance of effort rate
computed under this section exceeds the county maintenance of effort rate in
effect as of September 30, 1984, the rate in effect as of September 30, 1984
must remain in effect until a time that the rate computed under this section is
less than the September 30, 1984 rate. This limitation remains in effect until
December 31, 2030 or until a new reimbursement system determined by the
department replaces the current system, whichever is sooner. For each
subsequent county fiscal year, the maintenance of effort rate may not increase
by more than $1.00 per patient day each year.

(vi) For county-owned facilities,
reimbursement for plant costs must continue to be based on interest expense and
depreciation allowance unless otherwise provided by law.

(d) Pharmaceutical services from a licensed pharmacist of the
individual’s choice as prescribed by a licensed physician or dentist and
approved by the department. In an emergency, but not routinely, the individual
may receive pharmaceutical services rendered personally by a licensed physician
or dentist on the same basis as approved for pharmacists.

(e) Other medical and health services as authorized by the
department.

(f) Psychiatric care provided according to the guidelines
established by the department to the extent of appropriations made available by
the legislature for the fiscal year.

(g) Screening, laboratory services, diagnostic services,
early intervention services, and treatment for chronic kidney disease under
guidelines established by the department. A clinical laboratory performing a
creatinine test on an eligible individual under this subdivision must include
in the lab report the glomerular filtration rate (eGFR) of the individual and
must report it as a percentage of kidney function remaining.

(h) Medically necessary acute medical detoxification for
opioid use disorder, medically necessary inpatient care at an approved
facility, or care in an appropriately licensed substance use disorder
residential treatment facility.

(i) Mental health screenings during the postpartum period as
described in section 9137 of the public health code, 1978 PA 368, MCL 333.9137.

(2) The director must provide notice to the public, according
to applicable federal regulations, and must obtain the approval of the
committees on appropriations of the house of representatives and senate of the
state legislature, of a proposed change in the statewide method or level of
reimbursement for a service, if the proposed change is expected to increase or
decrease payments for that service by 1% or more during the 12 months after the
effective date of the change.

(3) As used in this act:

(a) “Title XVIII” means title XVIII of the social security
act, 42 USC 1395 to 1395lll.

(b) “Title XIX” means title XIX of the social security act,
42 USC 1396 to 1396w-7.

(c) “Title XX” means title XX of the social security act, 42
USC 1397 to 1397n-13.

This
act is ordered to take immediate effect.

Clerk of the House of
Representatives

Secretary of the Senate

Approved___________________________________________

____________________________________________________

Governor
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