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National Healthcare Update: Michigan Exchange Legislation Passes Senate

Posted in [Government] By MBPA Staff writer

- The Michigan Business and Professional Association (MBPA), along with its sister group, the Michigan Food and Beverage Association (MFBA), work diligently to keep you up to date on our new federal healthcare law and how it will affect you, your family, and your business.

Although our Association’s did not support the passage of the Patient Protection and Affordable Care Act (PPACA), when given the option of allowing the federal government to control Michigan’s healthcare exchange, or having more state control, we opted for Michigan controlling its own healthcare exchange. We have had countless meetings with both key federal and state officials that are responsible for making critical decisions on how Michigan interacts in the federal healthcare exchange. Most recently in October we testified in front of the House Health Policy Committee on the need for a state run healthcare Exchange. Michigan must retain power over what happens with our healthcare. It is critical for us that the Michigan exchange allows for more options for the marketplace, is fair to small business, does not dictate carriers and coverage and allows for as much choice as possible with the least amount of negative impact on the economy. We were successful in these endeavors.

Update: Senate Bill 693 passed the Senate today, which creates the MIHealth Marketplace Act which will function as Michigan’s healthcare exchange that is required under the federal healthcare reform law passed last year. Highlights from the legislation include:

  • Establishes a small business health options program (SHOP) through which employers could provide healthcare coverage for their employees

  • IF PPACA is ruled unconstitutional or repealed, the SHOP would be suspended, thus no longer offering federal healthcare options to businesses

  • This Act cannot use State funds

  • Health insurance coverage costs will be the same on and off the exchange

  • Insurance agents maintain their role and compensation, offering healthcare services

  • Allows the Marketplace to charge assessments or user fees to participating health carriers to support its operations

  • Maintains two separate risk pools

This bill now heads to the House Health Policy Committee for further deliberation. As always, we will keep you up to speed as this legislation continues to move through the legislative process. Please contact our Government Relations Team with questions/comments at: or by phone at: 517-374-9128.

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