LANSING, Mich. (June 18, 2026) — Today, Michigan Senate Democrats passed a core piece of their Healthcare You Can Afford Agenda, Senate Bills 973–978, which would establish a state-based health insurance exchange (SBE).
Michigan was one of the first states to expand Medicaid in 2014 and has recently fought back against cruel healthcare cuts at the federal level — both bipartisan and bicameral efforts. By moving away from the federally managed marketplace, the legislation passed today would provide the state with greater flexibility to be more creative, more inclusive, and ultimately more cost-effective in the types of insurance products available to Michiganders.
“Michigan has always been a national leader in protecting access to affordable care, and establishing a state-based health insurance exchange is simply the next logical step in that work,” said Sen. Kevin Hertel (D-St. Clair Shores), Chair of the Senate Health Policy Committee and lead sponsor of the package. “Instead of relying on decisions made in Washington, we’ll have the flexibility with a state exchange to create a marketplace that works better and makes healthcare more affordable for the people of Michigan.”
Taking effect in 2010, the federal Affordable Care Act (ACA) created a health insurance marketplace where Americans could compare plans and choose an option that works best for them and their family — often with subsidies to reduce the cost. However, as the Trump administration has deliberately chosen to let critical cost-saving tax credits expire, while also ripping away billions of dollars from state Medicaid budgets, states have a greater incentive to take control of their own insurance marketplaces and protect access to affordable coverage.
“As Majority Vice Chair of the Senate Health Policy Committee, I’m committed to ensuring every Michigander has equitable access to quality healthcare that doesn’t break the bank,” said Sen. Sylvia Santana (D-Detroit), sponsor of Senate Bill 974. “A state-based exchange will help lower healthcare costs, improve public health, and reduce gaps in care for those who need it most.”
Twenty states currently operate their own SBEs, including Georgia and Virginia, which have launched their exchanges in the last two years. Several more states are currently considering establishing an SBE or are in the process of transitioning, including Oregon and Oklahoma. By managing their own marketplaces, these states have seen enrollment rates increase, while premium costs decrease for individuals. In Colorado, they were able to decrease premium prices by a whole 23% with their state exchange.
“Inclusive, quality healthcare should be accessible to everyone, not a privilege reserved for those who can afford it,” said Sen. Erika Geiss (D-Taylor), sponsor of Senate Bill 975. “By creating a state-based health exchange, we’re not only lowering costs and improving health outcomes — we’re also advancing health equity for every Michigander.”
Under the federal exchange, the Centers for Medicare and Medicaid Services impose a user fee on insurers, collecting a percentage of the premiums from plans sold through Healthcare.gov. By establishing a state-based exchange, Michigan would instead be able to keep that revenue in-state, giving us the flexibility and resources to better meet residents’ healthcare needs, expand coverage, reduce administrative costs, and improve outreach to underserved communities.
“Through our ability to implement more targeted, data-informed outreach while also making strategic investments in our state-based exchange, we can better reach uninsured residents and connect them with affordable coverage — ultimately building a healthier, stronger Michigan for everyone,” said Sen. Paul Wojno (D-Warren), sponsor of Senate Bill 976.
“Healthcare should be affordable, accessible, and tailored to the needs of the people it serves,” said Sen. Darrin Camilleri (D-Trenton), sponsor of Senate Bill 977. “This transition away from the federal exchange gives us greater ability to design a more efficient, equitable healthcare system that upholds those core tenets and ensures no one goes without the care they need and deserve.”
“No hardworking family should have to choose between going to the doctor and paying their bills,” said Sen. Veronica Klinefelt (D-Eastpointe), sponsor of Senate Bill 978. “With a state-based exchange, we have more opportunity and resources to make coverage more accessible, so that every resident can find quality, affordable coverage that fits their needs.”
This legislation now heads to the Michigan House for their consideration.