Prudent Purchaser Act — Substance Use Disorder Program References

Current understanding

The Prudent Purchaser Act (1984 PA 233) governs preferred provider organization arrangements in Michigan and references licensed substance use disorder (SUD) services programs among eligible providers. HB 5728 (103rd Legislature), tie-barred to HB 5729’26, proposes to amend MCL 550.52 so that references to licensed SUD programs also cover programs that are exempt from licensure, potentially broadening the set of SUD providers that can participate in PPO networks. The bill has been introduced.

Evidence log

• 2026-03-18 — Health: licensing; references to licenses for certain substance use disorder services programs in the municipal health facilities corporations act; modify to include those exempt from licensure. Amends sec. 103 of 1987 PA 230 (MCL 331.1103). TIE BAR WITH: HB 5729’26: cross-connection with municipal-health-facilities-sud-references: HB 5730 and HB 5728 are parallel companion bills to HB 5729, each updating cross-references in a different act (Municipal Health Facilities Corporations Act and Prudent Purchaser Act) to recognize SUD programs exempt from licensure. (novelty: 2)
• 2026-03-18 — Health: substance use disorder; persons required to hold a substance use disorder services program license; modify and require uniform rules as is reasonable. Amends secs. 6230, 6233, 6234 & 6238 of 1978 PA 368 (MCL 333.6230 et seq.).: HB 5729 (103rd Legislature), the tie-bar companion to HB 5728, was introduced to amend MCL 333.6230, 6233, 6234, and 6238 to modify who must hold an SUD services program license and require uniform licensing rules — clarifying the licensure landscape referenced by the PPO amendment. (novelty: 2)

Open questions

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