Michigan is considering a transition from the federally managed health insurance marketplace to a state-managed exchange, as several bills have been passed by the state Senate. This move is aimed at creating a more accessible and affordable healthcare system for all Michiganders, with the potential to lower costs, improve efficiency, and boost access to care.
The package of bills, Senate Bills 633-638, aims to establish a new, state-based health insurance exchange for individuals and small businesses to begin purchasing plans in 2026. The legislation, sponsored by Sen. Kevin Hertel (D-St. Clair Shores), is designed to provide Michigan with more flexibility, affordability, and autonomy to tailor the marketplace to fit local healthcare needs.
Co-sponsoring state Sen. Sylvia Santana (D-Detroit) emphasized that this move would also benefit underserved communities, lower insurance rates, curb administrative costs, and create a more efficient insurance marketplace. State Sen. Darrin Camilleri (D-Trenton) stated that the transition is about taking control of Michigan’s healthcare future and designing a more efficient and accessible healthcare system that prioritizes the needs of Michiganders.
The shift to a state-based exchange would allow the revenue generated by the exchange to stay in Michigan rather than being returned to the federal government. This would enable the state to reinvest in its communities, improve public health outreach, and ensure that everyone has the opportunity to receive quality healthcare, regardless of their zip code or income level.
The number of states operating their own exchange is increasing, with at least 18 states now running their own state-based exchanges, including six that have launched in the last four years. During the 2024 open enrollment period, data shows that 418,000 Michiganders bought health insurance through the federal marketplace, marking a 30% increase from the previous year and the highest health insurance enrollment numbers in the state’s history.
State Sen. Veronica Klinefelt (D-Eastpointe) highlighted the importance of the state legislation’s ability to take a custom approach to reach uninsured residents. State Sen. Erika Geiss (D-Taylor) added that the shift would boost equity and inclusivity, improving health outcomes by providing tailored, localized options for residents leading to better coverage that meets the needs of the community while promoting equity and inclusivity in healthcare services.
Kyle Kaminski, an award-winning investigative journalist, covers news across Michigan. He previously worked as the managing editor at City Pulse in Lansing and as a reporter for the Traverse City Record-Eagle. For the latest Michigan news, follow The ‘Gander on Twitter.
