Legislation that would transition Michigan from the federally managed health insurance marketplace to a State-Based Exchange (SBE) was passed by the Senate this week.
Key Points:
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- Senate Bills 633 – 638 were sponsored by Senators Kevin Hertel (D-St. Clair Shores), Darrin Camilleri (D-Trenton), and Veronica Klinefelt (D-Eastpointe).
- According to the sponsors, the change would expand access to affordable healthcare and improve health outcomes for residents.
- Under the proposal, Michigan would establish an SBE, which would be available for individuals and small businesses to purchase plans beginning January 1, 2026.
- The federal Affordable Care Act created a health insurance marketplace, which took effect in 2010. The Act allows states to determine whether to use the federal platform or manage their own.
- During 2024 open enrollment, 418,000 Michigan residents purchased coverage through the federal marketplace, a 30% increase from the prior year.
- Currently, eighteen states run their own SBE, six of which were established in the last four years.
Next Steps:
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- The bill package was referred to the House Insurance and Financial Services Committee for consideration.
