An organization shall not refuse to enter into a prudent purchaser agreement with a health care provider on the basis of religion, race, color, national origin, age, sex, or marital status. Upon receipt of a complaint of a violation of this section, in a form satisfactory to the commissioner, and if the commissioner has probable cause to believe that such a violation has occurred, the commissioner shall conduct a hearing pursuant to the administrative procedures act of 1969, Act No. 306 of the Public Acts of 1969, being section 24.201 to 24.315 of the Michigan Compiled Laws. If after such hearing the commissioner determines the organization has violated this section, the commissioner may do 1 or more of the following:
  (a) Issue a cease and desist order requiring the organization to cease and desist from engaging in the conduct prohibited by this section.

Terms Used In Michigan Laws 550.54

  • Commissioner: means the commissioner of insurance. See Michigan Laws 550.52
  • Complaint: A written statement by the plaintiff stating the wrongs allegedly committed by the defendant.
  • Health care provider: means a health facility or a person licensed, certified, or registered under part 62 or parts 161 to 182 of the public health code, 1978 PA 368, MCL 333. See Michigan Laws 550.52
  • Organization: means an insurer, a dental care corporation, hospital service corporation, medical care corporation, health care corporation, or third party administrator. See Michigan Laws 550.52
  • Probable cause: A reasonable ground for belief that the offender violated a specific law.
  • Prudent purchaser agreement: means an agreement between an organization and a health care provider under section 3. See Michigan Laws 550.52
  (b) Issue a cease and desist order requiring the organization to enter into a prudent purchaser agreement with a health care provider.
  (c) Impose a fine of not more than $500.00 for each violation, but not to exceed an aggregate fine of $5,000.00, unless the organization knew or reasonably should have known it was violating this section, in which case the fine shall not be more than $2,500.00 for each violation and shall not exceed an aggregate fine of $25,000.00 for all violations committed in a 6-month period.
  (d) Suspend, limit, or revoke the organization’s license or certificate of authority.
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