Federal Health Care Law Update: Michigan’s Participation

By Bonnie Bochniak
Vice President, Government Relations
MBPA/MFBA

September 2012 – The Michigan Business and Professional Association (MBPA) and its sister group, the Michigan Food and Beverage Association (MFBA),  make it a top priority to keep you up to date on the federal health care law and how it affects you, your business, and/or clients.  Recently there has been a decision made in terms of how Michigan will participate in the federal health care program.

To give you some background, all states where given the option by the federal government on how they would like to interact with the federal health care plan.  There are three options: to create their own state-based health care exchange, to partner with the federal government and operate a state/federal partnership plan, and lastly, the state has the option to allow the federal government to run their federal program inside their respective state.

In the state-based health care exchange, Michigan would be allowed to participate in essentially 12 different areas, making decisions on what is best for our region.  In the state/federal partnership plan, Michigan is allowed to participate in two out of the 12 decision areas, which stated by law, is Planned Management and Customer Service.  Lastly, in the complete federally-run plan, Michigan is not granted any decision making power.  Our state has chosen to move forward in the direction of the state/federal partnership.

Michigan’s participation in the federal health care plan must be presented to President Obama by Dec. 14, 2012.  Recent public communications from Governor Rick Snyder’s office have indicated that Michigan will pursue this state/federal partnership due to inaction in the legislature that was needed to move forward as a state-based exchange model.  This inaction left no other choice but to opt for the state/federal partnership, giving Michigan less decision making power.

There are still more details to be made public by the Obama Administration on specific conditions that deal with agents/brokers on the federal exchange.  Once more information is made public, we will be able to share those details with you.  In the meantime, we are continuing to meet with elected officials and decision makers in the health care arena.

If you have any questions please do not hesitate to contact our government relations team by phone at: 586-393-8800 or by email: bbochniak@michbusiness.org.