Simply creating a new state bureaucracy will not make health care more affordable. What it will do is increase government spending—estimates predict implementation costs ranging from $71 million to more than $232 million. At the same time, these bills provide no guarantee that a state-run exchange will lower costs for consumers compared to the federal exchange. We need to make sure that Michigan families are the sole beneficiaries of any potential savings. As currently written, there’s no guarantee in this bill to ensure that happens.
My amendment would change that by requiring Michigan’s state-based exchange to match the federal exchange user fee rate so any savings are reflected in lower costs for consumers. We should support policies that actually lower costs and improve access to affordable care for Michigan families. I ask for your support of my amendment.
Senator Hertel’s statement is as follows:
While I appreciate the amendment my colleague from the 9th District is offering today, I think it’s important to note that the whole purpose of this package is to remove ourselves from the federal government’s decision-making over health care decisions in the individual market today that we are seeing is negatively impacting residents all across this state, to the point where they aren’t able to afford their health insurance anymore. While it’s easy to look at a financial assessment and look at a paper that somebody in a back room decided what the financial impact might be, we have the benefit here in Michigan to look at multiple other states that have already done this—Republican states and Democratic states—that have been able to lower premiums for their residents and find savings.
Directly to the amendment offered, we already in this legislation have a requirement that the fee charged on the exchange can’t be any higher or lower than one percent of the federal fee. The federal fee over the last five or six years has been as high as 3.5 percent; it has been as low as 1.5 percent; in 2027, it’ll be 1.9 percent. We give the authority for that fee to be set by the board. Any increase in the fee requires a three-fourths vote by that board. What we’re trying to do here is create flexibility in the state of Michigan to make our own decisions about how people can access affordable health care, because the federal government in recent history has proven that they don’t care about providing affordable health insurance to residents across our state. We want to make sure we have the ability to do it here in the state of Michigan.
Senator Webber’s second statement is as follows:
When the state debates additional health care mandates beyond the federal scope, we have a duty to balance those discussions with overall cost so those who need care can afford it. My amendment would establish a task force to ensure health care is affordable in Michigan. By studying the impact of proposed state health insurance mandates that exceed the essential health benefits required under the Affordable Care Act, the task force would examine the social and financial impacts of proposed mandated health benefits. It would also evaluate the medical efficacy of the proposed mandates. We must ensure that those who need care can afford it by understanding the costs and consequences of new mandates before they’re passed on to Michiganders. I ask for support of my amendment.
The following bill was read a third time:
Senate Bill No. 974, entitled
A bill to amend 1956 PA 218, entitled “The insurance code of 1956,” by amending sections 1261, 1262, 1262a, and 1264 (MCL 500.1261, 500.1262, 500.1262a, and 500.1264), as added by 2014 PA 566.
The question being on the passage of the bill,
The bill was passed, a majority of the members serving voting therefor, as follows: