Michigan Compiled Laws § 500.3706 Open Enrollment Period For Sole Proprietors; Available Health Benefit Plans; Exclusion Or Limitation; Preexisting Condition.


500.3706 Open enrollment period for sole proprietors; available health benefit plans; exclusion or limitation; preexisting condition.

Sec. 3706.

(1) A small employer carrier may apply an open enrollment period for sole proprietors. If a small employer carrier applies an open enrollment period for sole proprietors, the open enrollment period shall be offered at least annually and shall be at least 1 month long.

(2) A small employer carrier is not required to offer or provide to a sole proprietor all health benefit plans available to small employers who are not sole proprietors. However, a small employer carrier is required to offer to all sole proprietors all health benefit plans in a geographic area that are available to any sole proprietor in that geographic area.

(3) A small employer carrier may exclude or limit coverage for a sole proprietor for a condition only if the exclusion or limitation relates to a condition for which medical advice, diagnosis, care, or treatment was recommended or received within 6 months before enrollment and the exclusion or limitation does not extend for more than 6 months after the effective date of the health benefit plan.

(4) A small employer carrier shall not impose a preexisting condition exclusion for a sole proprietor that relates to pregnancy as a preexisting condition or with regard to a child who is covered under any creditable coverage within 30 days of birth, adoption, or placement for adoption, provided that the child does not experience a significant break in coverage and provided that the child was adopted or placed for adoption before attaining 18 years of age. A period of creditable coverage under this subsection shall not be counted for enrollment of an individual under a health benefit plan if, after this period and before the enrollment date, there was a 63-day period during all of which the individual was not covered under any creditable coverage.


History: Add. 2003, Act 88, Eff. Jan. 23, 2004

Compiler's Notes: Former MCL 500.3706, which pertained to multi-state regional disability or health insurance plan, was repealed by Act 271 of 2001, Imd. Eff. Jan. 11, 2002.
Popular Name: Act 218


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Last modified: October 10, 2016