Michigan Compiled Laws

Mich. Comp. Laws § 330.1804 (2026)

Financial liability of responsible party.

✓ current as of July 2026
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MENTAL HEALTH CODE


Act 258 of 1974


330.1804 Financial liability of responsible party.

Sec. 804.

    (1) A responsible party is financially liable for the cost of services provided to the individual directly by or by contract with the department or a community mental health services program.

    (2) The department or a community mental health services program shall charge responsible parties for that portion of the financial liability that is not met by insurance coverage. Subject to section 814, the amount of the charge shall be whichever of the following is the least amount:

    (a) Ability to pay determined under section 818 or 819.

    (b) Cost of services as defined in section 800.

    (c) The amount of coinsurance and deductible in accordance with the terms of participation with a payer or payer group.

    (3) The department or community mental health services program shall waive payment of that part of a charge determined under subsection (2) that exceeds financial liability. The department or community mental health services program shall not impose charges in excess of ability to pay.

    (4) Subject to section 114a, the department may promulgate rules to establish therapeutic nominal charges for certain services. The charges shall not exceed $3.00 and shall be authorized in the recipient's individual plan of services.

History: 1974, Act 258, Eff. Nov. 6, 1974 ;-- Am. 1995, Act 290, Eff. Mar. 28, 1996

AdminRule Notes:

    R 330.1001 et seq. of the Michigan Administrative Code.

Notes of Decisions
Cited in 11 cases, 1980–2007 · leading case: Nat'l Pride at Work, Inc v. Governor, 732 N.W.2d 139 (Mich. Ct. App. 2007).
Nat'l Pride at Work, Inc v. Governor, 732 N.W.2d 139 (Mich. Ct. App. 2007). “71; the right to pension and retirement benefits that accrue during the marriage, MCL 552.18; the right to claim an exemption *159 on taxes for spousal inheritance, MCL 205.”
In Re Johannes Trust, 479 N.W.2d 25 (Mich. Ct. App. 1991). “*517 An individual who receives services from the Department of Mental Health is financially liable for those services and the department, subject to certain restrictions, may attach the assets and income of those individuals to pay for the services provided by the department.”
In Re Hertsberg Inter Vivos Trust, 578 N.W.2d 289 (Mich. 1998). · cites it 2× “Furthermore, to allow an individual to so shelter assets would defeat the express requirement of the Mental *292 Health Code that individuals reimburse the state for services rendered to them by the department.”
Miller v. Dep't of Mental Health, 442 N.W.2d 617 (Mich. 1989). “800(800), MCL 330.1804; MSA 14.800(804). Carol Miller was over forty when her father died.”
In Re Konke Est., 296 N.W.2d 226 (Mich. Ct. App. 1980). “The state is required to provide medical services for mentally incompetent persons regardless of ability to pay for such services.”
In Re Nichols, 388 N.W.2d 682 (Mich. Ct. App. 1986). “Nichols the equal protection of law? Section 804 of the Mental Health Code, MCL 330.1804; MSA 14.800(804), provides that an individual, *7 the spouse, and the parents are financially liable for services provided to the individual by the department.”
Miller v. Dep't of Mental Health, 411 N.W.2d 856 (Mich. Ct. App. 1987). “By statute, an individual receiving services from the department is responsible for the cost of those services, MCL 330.1804; MSA 14.800(804), although services cannot be denied merely because an individual is unable to pay.”
McKeon v. Dep't of Mental Health, 191 Mich. App. 514 (Mich. Ct. App. 1991). “*517 An individual who receives services from the Department of Mental Health is financially liable for those services and the department, subject to certain restrictions, may attach the assets and income of those individuals to pay for the services provided by the department.”
Colman v. Dep't of Mental Health, 457 Mich. 430 (Mich. 1998). · cites it 2× “] As recognized by the Court of Appeals in In re Johannes Trust, supra, it would be contrary to public policy to allow a person to shelter assets from creditors in a trust of which he is the beneficiary. Furthermore, to allow an individual to so shelter assets would defeat the…”
Dep't of Treasury v. Hart, 296 N.W.2d 226 (Mich. Ct. App. 1980). “The state is required to provide medical services for mentally incompetent persons regardless of ability to pay for such services.”
Dep't of Mental Health v. Nichols, 150 Mich. App. 1 (Mich. Ct. App. 1986). “Nichols the equal protection of law? Section 804 of the Mental Health Code, MCL 330.1804; MSA 14.800(804), provides that an indi *7 vidual, the spouse, and the parents are financially liable for services provided to the individual by the department.”
Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.