Michigan Legislation to Create State-Based Health Exchange Fails

For the last several months, Michigan has been preparing to partner with the federal government to create a health exchange.  This month, Governor Snyder filed materials with the United States Department of Health and Human Services (“HHS”) to move forward with the partnership.  As part of this process, Michigan reserved its option to create a state-based health exchange.  However, it now appears that Michigan will not exercise this option and will continue to move forward with its partnership with HHS under the framework of a federally-facilitated exchange.

Yesterday, pending legislation to create a state-based health exchange failed to gain necessary support from the state House Health Policy Committee.  Senate Bill 693, which was designed to create Michigan’s state-based health exchange called MI Health Marketplace, was defeated in committee on a 9-5 vote, with two abstentions.  Resistance to SB 693 was fueled by lingering, unanswered questions related to a health-based system, especially with respect to the future costs to Michigan taxpayers.

Despite Michigan’s election to form a partnership exchange with HHS, Michigan can still establish a state-based exchange to take over operations in 2015.

To find out more about the impact that the Affordable Care Act has on health care and your business, contact Health Care Department Chair Jonathan Raven at jraven@fraserlawfirm.com or 517.377.0816, or our Employee Benefits Department Co-Chair Elizabeth H. Latchana at elatchana@fraserlawfirm.com or 517.377.0826.

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