Michigan Laws 330.1804 – Financial liability of responsible party
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(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:
Terms Used In Michigan Laws 330.1804
- Ability to pay: means the ability of a responsible party to pay for the cost of services, as determined by the department under section 818 and 819. See Michigan Laws 330.1800
- Contract: A legal written agreement that becomes binding when signed.
- Cost of services: means the total operating and capital costs incurred by the department or a community mental health services program with respect to, or on behalf of, an individual. See Michigan Laws 330.1800
- Individual: means the individual, minor or adult, who receives services from the department or a community mental health services program or from a provider under contract with the department or a community mental health services program. See Michigan Laws 330.1800
- Insurance coverage: means any policy, plan, program, or fund established or maintained for the purpose of providing for its participants or their dependents medical, surgical, or hospital benefits. See Michigan Laws 330.1800
- Responsible party: means a person who is financially liable for services furnished to the individual. See Michigan Laws 330.1800
(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.