Federal Healthcare Alert! Michigan’s House Denies Second Chance at State Based Exchange; Hope Held For Next Year

By Bonnie Bochniak
MBPA Government Relations
Dec. 11, 2012
 

The Michigan Business and Professional Association (MBPA) and its sister group, the Michigan Food and Beverage Association (MFBA), make it priority #1 to keep you up to date on the federal healthcare law and how it affects you, your business, and/or clients. Today the Michigan House Health Policy Committee, when given a second chance to approve a state based exchange, rejected that opportunity. The Speaker of the House made a statement mid-December that establishing a state based exchange in Michigan will not happen this year, but has potential in next year’s session.

As a refresher, in the state-based healthcare exchange, Michigan would be allowed to participate in essentially twelve 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 twelve decision areas, which stated by law is Planned Management and Customer Service. Lastly, in the complete federal run plan, Michigan is not granted any decision making power.  The continued inaction by the House of Representatives leaves no other choice but for Michigan to pursue a state/federal partnership, giving Michigan less decision making power.

Per the ACA, if Michigan choses now to pursue the state/federal partnership, it still has the opportunity in 2013 to switch over to a state based exchange, if approved by the legislature and governor. Also, per the ACA, the 9.8 million dollars in federal grant funding to lay the ground work for establishing a state-federal partnership is still available.

The 9.8 million dollars in federal grant monies in no way ties our state to any permanent healthcare decisions; it merely gives us much needed revenue to begin technical compliance, while saving our general fund dollars. The time to act is now. This is the last remaining option we have for Michigan to maintain some control over decisions made in regards to our healthcare

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