Michigan Compiled Laws

Mich. Comp. Laws § 550.1101 (2026)

Short title.

✓ current as of July 2026

Find cases: SyfertCases citing this section MI-LEGlegislature.mi.gov JustiaChapter on Justia CornellLII Search CasesGoogle Scholar

THE NONPROFIT HEALTH CARE CORPORATION REFORM ACT

Act 350 of 1980

550.1101 Short title.

Sec. 101.

This act shall be known and may be cited as "the nonprofit health care corporation reform act".

History: 1980, Act 350, Eff. Apr. 3, 1981

Constitutionality Notes:

Procedural fairness is required by the due process clause before governmental action drastically alters essential terms of the contract between nonprofit group health care plans and hospitals and nursing homes providing health care services; however, the guarantee of procedural due process does not necessarily require an adversary proceeding. Convalescent Center v Blue Cross, 414 Mich 247; 324 NW2d 851 (1982).

Administrative hearings under the Administrative Procedures Act, however informal, comport with the procedural fairness required by due process in the absence of an explicit statutory requirement that a contested evidentiary hearing be held. Convalescent Center v Blue Cross, 414 Mich 247; 324 NW2d 851 (1982).

This act is unconstitutional in the following three particulars:

(1) The act's provision for an actuary panel to resolve risk factor disputes is an unconstitutional delegation of legislative authority in that it lacks adequate standards (MCL 550.1205(6)).

(2) The statutory restrictions on administrative services only (ASO) contracts violate equal protection of the laws insofar as they result in arbitrary and discriminatory treatment of health care corporations vis-a-vis commercial insurers (MCL 550.1104(3), 550.1211, 550.1414a, 550.1415, and 550.1607(1)).

(3) The commissioner's authority to issue a cease and desist order based on probable cause against a health care corporation for noncompliance with the act establishes an improper burden of proof (MCL 550.1402(7)).

The Supreme Court ruling on these three areas of this act does not affect the constitutionality of the remainder of the act. Where, as here, the unconstitutional provisions are easily severable, the remainder of the act need not be affected. Blue Cross and Blue Shield of Michigan v Governor, 422 Mich 1; 367 NW2d 1 (1985).

Compiler's Notes:

For transfer of the Department of Insurance and Office of the Commissioner on Insurance from the Department of Licensing and Regulation to the Department of Commerce, see E.R.O. No. 1991-9, compiled at MCL 338.3501 of the Michigan Compiled Laws.

For transfer of authority, powers, duties, functions, and responsibilities of the insurance bureau and the commissioner of insurance to the commissioner of the office of financial and insurance services and the office of financial and insurance services, see E.R.O. No. 2000-2, compiled at MCL 445.2003 of the Michigan compiled laws.

PopularName Notes:

Blue Cross-Blue Shield

PopularName Notes:

Act 350

Notes of Decisions

Cited in 34 cases, 1982–2020 · leading case: PT Today, Inc. v. Comm'r of the Off. of Fin. & Ins. Servs., 715 N.W.2d 398 (Mich. Ct. App. 2006).

Sort: Relevance Newest Treatment

PT Today, Inc. v. Comm'r of the Off. of Fin. & Ins. Servs., 715 N.W.2d 398 (Mich. Ct. App. 2006). · cites it 2× “The Michigan Commissioner of the Office of Financial and Insurance Services (Commissioner) 1 2 is empowered to regulate BCBSM under 1980 PA 350 , the Nonprofit Health Care Corporation Reform Act (the Act), MCL 550.1101 et seq? BCBSM is a nonprofit, charitable health care…”

BPS Clinical Labs. v. Blue Cross & Blue Shield, 552 N.W.2d 919 (Mich. Ct. App. 1996). · cites it 2× “MCL 550.1101 et seq.) MSA 24.660(101) et seq.”

Calhoun Cnty. v. Blue Cross Blue Shield, 824 N.W.2d 202 (Mich. Ct. App. 2012). “350 [MCL 550.1101 et seq.] will be reflected in the hospital claims cost contained in Amounts Billed.”

Gen. v. Blue Cross Blue Shield, 291 Mich. App. 64 (Mich. Ct. App. 2010). · cites it 3× “In these consolidated appeals, plaintiff/petitioner (hereafter plaintiff) appeals as of right the trial court’s orders granting motions for summary disposition filed by defendant Blue Cross Blue Shield of Michigan (BCBSM) in actions in which plaintiff challenged the legality of…”

Michigan Podiatric Med. Ass'n v. Nat'l Foot Care Prog., Inc., 438 N.W.2d 349 (Mich. Ct. App. 1989). · cites it 2× “, the Nonprofit Health Care Corporation Reform Act, MCL 550.1101 et seq.; MSA 24.660(101) et seq.”

Smith v. Physicians Health Plan, Inc, 514 N.W.2d 150 (Mich. 1994). · cites it 2× “The majority also refers ( ante, p 754, n 6) to a provision of The Nonprofit Health Care Corporation Reform Act ( 1980 PA 350 , MCL 550.1101 et seq. ; MSA 24.660[101] et seq.”

Genesis Ctr., PLC v. Comm'r of Fin. & Ins. Servs., 633 N.W.2d 834 (Mich. Ct. App. 2001). · cites it 2× “After bcbsm’s denial, plaintiffs filed this lawsuit 2 in the Ingham Circuit Court, arguing that the court had jurisdiction under 1980 PA 350 , the Nonprofit Health Care Corporation Reform Act (nhccra), MCL 550.1101 et seq., to compel the commissioner to regulate bcbsm.”

United States v. Blue Cross & Blue Shield of Michigan, 726 F. Supp. 1517 (E.D. Mich. 1989). · cites it 2× “MCLA § 550.1101 et seq. Blue Cross provides health care insurance to individuals and groups, and also acts as an administrator of health care plans for employers who are self-insured, i.”

Westland Convalescent Ctr. v. Blue Cross & Blue Shield, 324 N.W.2d 851 (Mich. 1982). · cites it 2× “These enabling acts were repealed effective April 3, 1981, by the Nonprofit Health Care Corporation Reform Act, 1980 PA 350 ; MCL 550.1101 et seq.; MSA 24.660(101) et seq.”

Blue Cross & Blue Shield v. Governor, 367 N.W.2d 1 (Mich. 1985). “This case presents important questions of first impression regarding the constitutionality and construction of the Nonprofit Health Care Corporation Reform Act, 1980 PA 350 , MCL 550.1101 et seq.; MSA 24.660(101) et seq.”

Bombalski v. Auto Club Ins., 637 N.W.2d 251 (Mich. Ct. App. 2001). “And there is little doubt that the legislation governing health care corporations (bcbsm), MCL 550.1101 et seq. . . . , had as its chief concern the affordability of health care.”

Nat'l Wildlife Fed'n v. Dep't of Env't Quality, 856 N.W.2d 394 (Mich. Ct. App. 2014). “This Court noted that, although the appeal was to take the form of a contested case proceeding under the Administrative Procedures Act, the pertinent provisions of the Nonprofit Health Care Corporation Reform Act, MCL 550.1101 et seq., consistently specified that the independent…”

Show all 34 citing cases →

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.