Updates About Health Insurance

Senate Democrats plan to reintroduce legislation to establish a state-based health insurance exchange in Michigan and create a reinsurance pool aimed at helping reduce health care costs.

The proposal would shift the state from the federally facilitated exchange under the Affordable Care Act (ACA) to a system run by Michigan, over a one-year transition period. The change would aim to lower administrative costs, allowing the state to redirect savings into other programs and efforts, such as increasing the enrollment rate in Michigan and giving the State more flexibility in managing health care.

Ryan Hunt, CEO of the Michigan Works! Association, provided testimony in the Senate Appropriations Subcommittee on LEO/MEDC this week on workforce impacts related to proposed SNAP and Medicaid work requirements. Hunt’s testimony included a request for $25 million to support implementation, noting that local offices are already experiencing increased demand and may require additional staffing to manage higher caseloads and reduce administrative errors.

Hunt also urged continued funding for the Going PRO Talent Fund at $31.8 million, so that workers who go through the program can continue to receive training and see wage increases.

As open enrollment season begins, many Michigan residents can expect to see increased health insurance costs in the upcoming year. Monthly premiums for those with plans on the individual Affordable Care Act marketplace will increase by an average of 20.2%. Of the half million Michiganders with individual health insurance, nearly three quarters will see their plans increase by 15%. Folks with ACA-compliant insurance plans offered by small businesses will see an average increase of 11%. Large business plans, which rarely see steep increases, are also set for a 6.5% upsurge.

This rate hike comes as the approved individual health plans also see a decrease from 162 available plans this past year to 116 plans next year. This is expected to impact 200,000 individuals statewide who can no longer renew with their insurer.