MI HB6251

Allows health care providers to charge rates established on June 10, 2019 as payment in full for personal protection insurance claims if those rates were in contracts with insurers, parent/subsidiary/affiliate entities, or participating preferred provider organizations that had been in force for at least one year.

Establishes a penalty of 2 times the overdue amount when personal protection insurance benefits become overdue and over 120 days have passed since written notice of injury was received by the insurer.

Permits the injured person to recover the penalty instead of the health care provider in circumstances where the provider did not submit claims, provided written permission to the injured person, or failed to timely file an action for unpaid benefits.

Prevents insurers from raising an exhaustion of benefits defense if a penalty becomes payable and benefits are subsequently exhausted under applicable limits.

Specifies that penalties must not be considered when determining jurisdictional amounts in actions to recover unpaid benefits.