Michigan Dems want to expand access to health care through state insurance exchange

Several bills currently being introduced in the state legislature aim to improve access to health care in Michigan by creating a new, state-managed health insurance marketplace.

MICHIGAN – Six bills passed by the Michigan State Senate last week aim to facilitate Michigan’s transition from the state-managed health insurance market to a new, state-run exchange that could lower costs and provide more flexibility to meet the health care needs of Michigan residents.

In a statement, lead sponsor Sen. Kevin Hertel (D-St. Clair Shores) said moving away from the federal platform in favor of a state-managed health insurance exchange would result in a more accessible and affordable health care system that “works for all Michiganders.”

“Here in Michigan, we have a strong track record of securing health care for residents,” Hertel said. “Under this plan, we will have more tools to adapt the market to local health care needs while reducing costs, improving efficiency and increasing access to care.”

The legislative package –Senate Bills 633-638– aims to create a new government-run health insurance exchange for individuals and small businesses to purchase health insurance plans starting in 2026.

The bill passed the Senate last week and now goes to the House of Representatives for further consideration.

In 2010, the Affordable Care Act was passed Marketplace for health insurance Here, Americans can compare plans and choose the option that works best for them and their family – often with subsidies to help lower costs. Individual states can choose to run their own insurance exchange or use the state-managed platform. Michigan has chosen the latter.

In returnThe Centers for Medicare and Medicaid Services imposed a user fee on Michigan insurers and collected a percentage of premiums from plans sold in the state to cover the operational and administrative costs associated with operating the federal marketplace.

In a press release, state lawmakers said the transition to a state exchange would allow revenue generated by the exchange to stay in Michigan rather than flow back to the federal government, ultimately providing the state with more “flexibility, affordability and autonomy” to pursue a more “tailored” approach to meeting the health insurance needs of all Michiganders.

Co-sponsor and Democrat Sylvia Santana of Detroit said the move would also support efforts to reach underserved communities, lower insurance rates, contain administrative costs and create a more efficient insurance market.

“By keeping the funds in our state, we can reinvest in our communities, improve public health care and ensure that everyone has the opportunity to receive quality health care, regardless of their zip code or income level,” Santana said in a statement last week.

State Senator Darrin Camilleri (D-Trenton) said it was about “taking control of the future of our health care.”

“This transition will enable us to develop a more efficient and accessible health care system that puts the needs of Michiganders first,” he said. “It is a critical step to ensure that everyone, from our urban centers to our rural areas, has access to the care and support they need.”

During the 2024 open enrollment period, state data showed that 418,000 Michigan residents purchased health insurance through the federal marketplace, a 30% increase from the previous year and the highest health insurance enrollment numbers in the state’s history.

The number of states choosing to operate their own exchanges is also increasing. At least 18 states now operate their own state exchanges, six of which opened in the last four years.

State Senator Veronica Klinefelt (D-Eastpointe) said the most important aspect of the state legislation will be the ability for Michigan to take a “tailored approach” to reach uninsured citizens.

State Senator Erika Geiss (D-Taylor) said the change will also promote equity and inclusivity.

“Certification of these plans will help improve health outcomes by providing residents with tailored, localized options that result in better coverage that meets community needs while promoting health care equity and inclusivity,” Geiss said in a statement.

READ MORE: A record 1.4 million Michigan residents are covered by the Affordable Care Act

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