Updates About Health Insurance

Michigan Attorney General Dana Nessel joined 23 attorneys general in sending a letter to the U.S. Department of Health and Human Services’ (HHS) regarding a new proposed rule that seeks to enforce Section 1557 of the Affordable Care Act (ACA), which prohibits discrimination based on race, color, ethnicity, age, disability and literacy.

Since its inception in 2016 under the Obama Administration, the rule enforcing Section 1557 has been subject to ongoing litigation. It was most recently rewritten, and effectively weakened, by President Trump in 2020. The proposed rule under the Biden Administration, revises the Trump-era interpretation, and aims to largely reinstate significant aspects of the original 2016 rule.

Among other things, the proposed rule would apply prohibitions against discrimination under Section 1557 to many health insurers and third-party administrators, as well as providers who receive payment through the Medicare Part B program. That includes discrimination against various minority groups, including communities of color, women, LGBTQ+ individuals, people with disabilities, people with pregnancy-related conditions, and people with limited English proficiency.

Michigan Attorney General Dana Nessel announced on Wednesday, June 22, that Michigan will receive approximately $14.45 million following a lawsuit by Mallinckrodt ARC, LLC, formerly known as Questcor Pharmaceuticals, Inc.

The settlement stems from allegations made that between January 2013 and June 2020, Mallinckrodt knowingly underpaid Medicaid rebates for its drug Acthar, violating the Federal False Claims Act and the Michigan Medicaid False Claims Act.

Mallinckrodt will pay Michigan, 49 other states, Washington, D.C., Puerto Rico, and the federal government a total of $233.7 million, plus interest, over the next seven years. Michigan is expected to receive the first payment of $180,000 by mid-July.

On Wednesday, May 25, Governor Gretchen Whitmer signed Executive Directive 2022-5, which instructs State of Michigan departments and agencies to identify any avenues to increase, what she refers to as “protections for reproductive health care.”

Under this directive, departments that directly communicate with the public on reproductive health issues must provide information about the cost and availability of care while increasing awareness about contraception. Departments are to not cooperate or assist authorities in investigations against anyone obtaining, providing, or assisting someone accessing reproductive healthcare where it is legal. Departments are also encouraged to increase options for mental, physical, and reproductive health, as well as safeguard individuals’ privacy while assuring the safety of reproductive healthcare providers.

Previously, Attorney General Dana Nessel announced that should the United States Supreme Court overturn Roe Vs. Wade, she would not use her position to enforce Michigan’s 1931 statute that criminalizes abortion in the state.