(1) A health carrier shall provide written notice to a covered person of the internal grievance and external review processes at the time the health carrier sends written notice of an adverse determination.

    (2) Except as provided in subsection (3)(a), a request for an external review under section 11 or 13 must not be made until the covered person has exhausted the health carrier’s internal grievance process provided for by law.

    (3) The written notice of the right to request an external review for an adverse determination issued before the service is provided to a covered person must include all of the following:

    (a) A statement informing the covered person of all of the following:

    (i) If the covered person has a medical condition such that the time frame for completion of an expedited internal grievance would seriously jeopardize the life or health of the covered person or would jeopardize the covered person’s ability to regain maximum function, as substantiated by a physician either orally or in writing, the covered person or the covered person’s authorized representative may file a request for an expedited external review under section 13 at the same time the covered person or the covered person’s authorized representative files a request for an expedited internal grievance subject to section 13(3). A covered person who files a request under this subparagraph is considered to have exhausted the health carrier’s internal grievance process for purposes of subsection (2).

    (ii) The covered person or the covered person’s authorized representative may file a grievance under the health carrier’s internal grievance process, but if the health carrier has not issued a written decision to the covered person or the covered person’s authorized representative within the required time and without the covered person or the covered person’s authorized representative requesting or agreeing to a delay, the covered person or the covered person’s authorized representative may file a request for external review under section 9 and is considered to have exhausted the health carrier’s internal grievance process for purposes of subsection (2).

    (iii) A health carrier may waive its internal grievance process and the requirement for a covered person to exhaust the process before filing a request for an external review or an expedited external review.

    (iv) The covered person is considered to have exhausted a health carrier’s internal grievance process if the health carrier has failed to comply with the requirements of the internal grievance process unless the failure or failures are based on de minimis violations that do not cause, and are not likely to cause, prejudice or harm to the covered person.

    (b) A copy of the description of both the standard and expedited external review procedures the health carrier is required to provide under section 25, highlighting the provisions in the external review procedures that give the covered person or the covered person’s authorized representative the opportunity to submit additional information and including any forms used to process an external review.

    (c) As part of any forms provided under subdivision (b), an authorization form, or other document approved by the director, by which the covered person, for purposes of conducting an external review under this act, authorizes the health carrier and health care provider to disclose protected health information, including medical records, concerning the covered person that are pertinent to the external review.

    (4) The written notice of the right to request an external review for an adverse determination issued after the service was provided to the covered person must include the standard external review procedures information required under subsection (3) and be provided to the covered person in the manner prescribed by the director.