MI SB1294

Prohibits formation of new health care corporations in Michigan and prevents existing corporations from changing nonprofit status, dissolving, merging, or transferring control, except as permitted for merger with nonprofit mutual disability insurers under specified conditions.

Allows health care corporations to merge with nonprofit mutual disability insurers if boards adopt a merger plan and the commissioner approves it; the surviving entity must make annual social mission contributions up to $1.56 billion over 18 years to the Michigan Health Endowment Fund beginning April 2014.

Bans most favored nation clauses in provider contracts effective February 1, 2013 (with commissioner approval allowed until January 1, 2014), then prohibits them entirely; defines prohibited clauses that restrict provider contract rates or require rate disclosure.

Requires health care corporations to offer health care benefits to all Michigan residents regardless of health status until January 1, 2014, and mandates renewal of nongroup and group certificates at the option of individuals or plan sponsors.

Establishes the Michigan Health Endowment Fund as a nonprofit corporation governed by a nine-member board appointed by the governor; fund receives contributions to support health and wellness programs for children and seniors, with $120 million designated for medigap coverage subsidies for senior citizens from August 2016 through December 2021.