Michigan 2025-2026 Regular Session

Michigan Senate Bill SB0266

Introduced
4/29/25  
Refer
4/29/25  
Report Pass
6/4/25  
Refer
6/4/25  
Report Pass
6/5/25  
Engrossed
6/26/25  

Caption

Human services: medical services; certain personal service agreements; allow. Amends 1939 PA 280 (MCL 400.1 - 400.119b) by adding sec. 112l.

Summary

Senate Bill 266 would amend Michigan’s Social Welfare Act to create a new section governing “personal services agreements” for individuals seeking medical assistance, including Medicaid. The bill allows an individual, or the individual’s legally authorized representative, to enter into agreements with a household member, family member, relative, or any other person to provide services such as housekeeping, meal preparation, transportation, errands, home maintenance, assistance with daily living, and similar support. It defines two categories of agreements: a “qualified personal services agreement,” which must be written and signed before services are provided, and an “affirmed personal services agreement,” which may be oral or partly oral but must be documented with an affirmed statement or other evidence.

Impact

The bill would change how the Michigan Department of Health and Human Services evaluates payments made under personal care arrangements when determining Medicaid eligibility and divestment penalties. Under the bill, payments made under qualifying agreements would not be treated as divestments if they are for fair market value, and the department would be prohibited from presuming that services provided by relatives or household members are gratuitous. This would make it easier for applicants to document legitimate compensation for caregiving and related services, potentially reducing eligibility disputes and asset-transfer penalties under state Medicaid rules.

Sentiment

The available voting record suggests the bill was generally well received in the Senate. It was reported favorably out of committee without amendment by a 10-0 vote and then passed the Senate on third reading by a wide margin, 35-2. The lack of recorded committee testimony limits insight into detailed debate, but the strong votes indicate broad support for clarifying and legitimizing family and household caregiving arrangements.

Contention

The main policy issue is whether payments to relatives or other close contacts for caregiving and household support should be treated as legitimate compensation or as potential Medicaid asset divestments. Supporters appear to favor clearer rules and recognition of real caregiving arrangements, while any opposition likely centers on the risk that such agreements could be used to shield assets or complicate Medicaid eligibility enforcement. The bill addresses that concern by requiring fair-market-value compensation and, for nonqualified agreements, proof that the transfer was not intended to qualify for medical assistance.

Companion Bills

No companion bills found.

Previously Filed As

MI HB5405

Human services: medical services; certain personal service agreements; allow. Amends 1939 PA 280 (MCL 400.1 - 400.119b) by adding sec. 112l.

MI SB0402

Human services: medical services; coverage for street medicine services; require. Amends sec. 109 of 1939 PA 280 (MCL 400.109).

MI HB5922

Human services: medical services; claims for recovery against an ABLE account; prohibit. Amends sec. 112g of 1939 PA 280 (MCL 400.112g). TIE BAR WITH: HB 5923'26

MI HB4704

Human services: medical services; coverage for group prenatal care services; require. Amends 1939 PA 280 (MCL 400.1 - 400.119b) by adding sec. 109t.

MI SB0725

Human services: medical services; medical assistance coverage for donor human milk; require under certain conditions. Amends 1939 PA 280 (MCL 400.1 - 400.119b) by adding sec. 109y.

MI SB0415

Human services: medical services; coverage for group prenatal care services; require. Amends 1939 PA 280 (MCL 400.1 - 400.119b) by adding sec. 109t.

MI HB5813

Human services: medical services; reporting of error rate regarding Medicaid; require. Amends 1939 PA 280 (MCL 400.1 - 400.119b) by adding sec. 106c.

MI HB4839

Human services: medical services; requirement to prescribe generic medications; provide for. Amends 1939 PA 280 (MCL 400.1 - 400.119b) by adding sec. 109z.

MI HB4734

Human services: county services; designation of a patient surrogate for health care decisions; allow. Amends sec. 66h of 1939 PA 280 (MCL 400.66h).

MI SB0628

Human services: medical services; coverage for syringe service programs; provide for. Amends 1939 PA 280 (MCL 400.1 - 400.119b) by adding sec. 109t.

Similar Bills

MI HB5405

Human services: medical services; certain personal service agreements; allow. Amends 1939 PA 280 (MCL 400.1 - 400.119b) by adding sec. 112l.

MS HB1141

Trey's Law; create to prohibit nondisclosure agreements by sex abuse survivors.

TX HB5494

Relating to parentage resulting from assisted reproduction and gestational agreements.

HI SB1231

Relating To Parentage.

PA HB350

In intestate succession, further providing for rules of succession; in administration and personal representatives, providing for liability of executor; in proceedings prior to petition to adopt, further providing for rules of succession, for hearing, for alternative procedure for relinquishment and for hearing; in support matters generally, further providing general administration of support matters, repealing provisions relating to paternity and further providing for continuing jurisdiction over support orders; in general provisions relating to children and minors, repealing provisions relating to acknowledgment and claim of paternity; in jurisdiction, further providing for bases for jurisdiction over nonresident; enacting the Uniform Parentage Act; providing for parent-child relationship for certain individuals, for voluntary acknowledgment of parentage, for genetic testing, for proceeding to adjudicate parentage, for assisted reproduction, for surrogacy agreements and for information about donors; and, in organization and jurisdiction of courts of common pleas, further providing for original jurisdiction and venue.

HI HB1193

Relating To Parentage.

HI HB1193

Relating To Parentage.

CA AB1652

State agencies: regulations and legislation: nondisclosure agreements.