Michigan Clears a Narrow Route for CMS Patient Supports, Not General Cash Gifts

The newly effective law exempts authorized and sponsored model incentives from one state kickback provision.

By Kseniya Dzigava · October 3, 2026
Michigan Clears a Narrow Route for CMS Patient Supports, Not General Cash Gifts - original conceptual illustration
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The federal model conditions are essential

Michigan Public Act 97 took effect September 21 with a specific exception to a Medicaid anti-kickback provision. The enacted text says model arrangements and model patient incentives authorized and sponsored by the Centers for Medicare and Medicaid Services do not constitute a kickback or bribe under that section.

The wording is narrower than a general permission for providers to give any patient cash, waive any bill or offer rewards for referrals. Both the model context and CMS authorization and sponsorship matter. Other laws and program rules should not be assumed to disappear because this one provision changed.

An exception does not create universal benefits

The governor's announcement says the change helps avoid blocking federally approved patient supports such as fertility preservation, travel assistance and care coordination. Those examples are potential supports within qualifying arrangements, not a new statewide benefit that every Medicaid or Medicare member can claim.

Patients should ask their care team whether a specific CMS model applies and what assistance is available under its rules. Do not treat a seller's gift offer as proof of eligibility. The financial significance is removal of a narrow legal obstacle for approved arrangements, not an automatic reimbursement, open application program or blanket exemption from fraud protections.

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