{"id":7436,"date":"2026-06-18T12:58:55","date_gmt":"2026-06-18T16:58:55","guid":{"rendered":"https:\/\/senatedems.com\/santana\/?p=7436"},"modified":"2026-06-18T12:58:57","modified_gmt":"2026-06-18T16:58:57","slug":"senate-passes-legislation-to-establish-state-based-health-insurance-exchange-lower-healthcare-costs","status":"publish","type":"post","link":"https:\/\/senatedems.com\/santana\/2026\/06\/18\/senate-passes-legislation-to-establish-state-based-health-insurance-exchange-lower-healthcare-costs\/","title":{"rendered":"Senate Passes\u00a0Legislation to\u00a0Establish State-Based Health Insurance Exchange, Lower Healthcare Costs"},"content":{"rendered":"

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Part of Senate Democrats\u2019 Healthcare You Can Afford Agenda, this legislation would\u00a0help provide more inclusive and cost-effective insurance to Michiganders\u00a0<\/i><\/span><\/div>\n
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LANSING, Mich. (June\u00a018,\u00a02026) \u2014\u00a0Today, Michigan Senate Democrats\u00a0passed a core piece of their\u00a0<\/span>Healthcare You Can Afford Agenda<\/u><\/i><\/a><\/span>,\u00a0Senate Bills\u00a0<\/span>973<\/u><\/a><\/span>–978<\/u><\/a><\/span>, which would establish a state-based health insurance exchange (SBE).<\/p>\n

Michigan was\u00a0<\/span>one of the first states to expand Medicaid in 2014<\/u><\/a><\/span>\u00a0and\u00a0has\u00a0<\/span>recently fought back against cruel healthcare cuts at the federal level<\/u><\/a><\/span>\u00a0\u2014 both bipartisan and bicameral efforts.\u00a0By moving away from the federally managed marketplace, the legislation passed today\u00a0would provide the state with greater flexibility to be more creative, more inclusive, and\u00a0ultimately more\u00a0cost-effective in the types of insurance products available to Michiganders.<\/p>\n

\u201cMichigan has always been a national leader in protecting access to affordable care, and\u00a0establishing a state-based health insurance exchange is\u00a0simply\u00a0the next\u00a0logical\u00a0step in that work,\u201d said Sen.\u00a0Kevin Hertel<\/b>\u00a0(D-St. Clair Shores), Chair of the Senate Health Policy Committee and\u00a0<\/span>lead sponsor of the package<\/u><\/a><\/span>. \u201cInstead of relying on decisions made in Washington, we\u2019ll have the flexibility with a state exchange to create a marketplace that works better\u00a0and makes healthcare more affordable\u00a0for the people\u00a0of\u00a0Michigan.\u201d<\/p>\n

<\/span>Taking effect in 2010, the federal Affordable Care Act (ACA) created a health insurance marketplace where Americans could compare plans and choose\u00a0an option\u00a0that works best for them and their family \u2014 often with subsidies to reduce the cost. However, as the Trump administration has\u00a0<\/span>deliberately chosen to let critical cost-saving\u00a0tax credits expire<\/u><\/a><\/span>, while also\u00a0<\/span>ripping\u00a0away billions of dollars from state Medicaid budgets<\/u><\/a><\/span>,\u00a0states have a greater incentive to take control of their own insurance marketplaces and protect access to affordable coverage.<\/p>\n

\u201cAs Majority Vice Chair of the Senate Health Policy Committee, I\u2019m\u00a0committed to ensuring every Michigander has\u00a0equitable\u00a0access to quality healthcare that doesn\u2019t break the bank,\u201d said Sen.\u00a0<\/span>Sylvia Santana\u00a0<\/span><\/b>(D-Detroit), sponsor of\u00a0<\/span>Senate Bill\u00a0974<\/u><\/a><\/span>. \u201cA state-based exchange\u00a0will help\u00a0lower\u00a0healthcare\u00a0costs, improve public health,\u00a0and\u00a0reduce gaps in care for those who need it most.\u201d<\/p>\n

Twenty\u00a0states currently operate their own SBEs<\/u><\/a><\/span>, including Georgia and Virginia, which have launched their exchanges in the last two years.\u00a0Several more states are currently considering\u00a0establishing\u00a0an\u00a0SBE or are\u00a0in the process of transitioning, including Oregon and Oklahoma.\u00a0By managing their own marketplaces, these states\u00a0have seen\u00a0enrollment\u00a0rates increase, while premium costs\u00a0decrease\u00a0for individuals.\u00a0In Colorado, they were able to\u00a0<\/span>decrease premium prices\u00a0by\u00a0a whole\u00a023%<\/u><\/a><\/span>\u00a0with their state exchange.<\/p>\n

\u201cInclusive, quality healthcare should be accessible\u00a0to\u00a0everyone, not a privilege reserved for those who can afford it,\u201d said Sen.\u00a0<\/span>Erika Geiss\u00a0<\/span><\/b>(D-Taylor), sponsor of\u00a0<\/span>Senate Bill\u00a0975<\/u><\/a><\/span>. \u201cBy creating a state-based health exchange,\u00a0we\u2019re\u00a0not only lowering costs and improving\u00a0health outcomes\u00a0\u2014\u00a0we\u2019re\u00a0also\u00a0advancing health\u00a0equity\u00a0for every Michigander.\u201d<\/p>\n

Under the federal exchange, the Centers for Medicare and Medicaid Services\u00a0impose a user fee on insurers, collecting a percentage of the premiums from plans sold through Healthcare.gov. By\u00a0establishing\u00a0a state-based exchange, Michigan\u00a0would\u00a0instead\u00a0be able to\u00a0keep that revenue in-state, giving\u00a0us\u00a0the flexibility and resources to better meet residents\u2019\u00a0healthcare needs,\u00a0expand coverage, reduce administrative costs, and improve outreach to underserved communities.<\/p>\n

\u201cThrough our ability to implement more targeted, data-informed outreach\u00a0while\u00a0also\u00a0making strategic investments in\u00a0our\u00a0state-based exchange,\u00a0we can better\u00a0reach uninsured residents and connect them\u00a0with affordable coverage\u00a0\u2014\u00a0ultimately\u00a0building\u00a0a healthier, stronger Michigan\u00a0for everyone,\u201d said Sen.\u00a0<\/span>Paul Wojno<\/b>\u00a0(D-Warren), sponsor of\u00a0<\/span>Senate Bill 976<\/u><\/a><\/span>.<\/p>\n

\u201cHealthcare should be affordable, accessible, and tailored to the needs of the people it serves,\u201d said Sen.\u00a0<\/span>Darrin Camilleri<\/b>\u00a0(D-Trenton), sponsor of\u00a0<\/span>Senate Bill\u00a0977<\/u><\/a><\/span>. \u201cThis transition away from the federal exchange\u00a0gives us\u00a0greater\u00a0ability to design a more efficient,\u00a0equitable\u00a0healthcare system that upholds those core tenets\u00a0and ensures no one goes without the care they need and deserve.\u201d<\/p>\n

\u201cNo hardworking family should have to choose between going to the doctor and paying their bills,\u201d said Sen.\u00a0<\/span>Veronica Klinefelt<\/b>\u00a0(D-Eastpointe), sponsor of\u00a0<\/span>Senate Bill 978<\/u><\/a><\/span>. \u201cWith a state-based exchange, we have\u00a0more\u00a0opportunity\u00a0and resources\u00a0to\u00a0make coverage more accessible, so that every resident can find quality, affordable coverage that fits their needs.\u201d<\/p>\n

This legislation now heads to the Michigan House for their consideration.<\/p><\/div>\n

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Part of Senate Democrats\u2019 Healthcare You Can Afford Agenda, this legislation would\u00a0help provide more inclusive and cost-effective insurance to Michiganders\u00a0 \u00a0 LANSING, Mich. (June\u00a018,\u00a02026) \u2014\u00a0Today, Michigan Senate Democrats\u00a0passed a core […]<\/p>\n","protected":false},"author":17,"featured_media":7437,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","twitterCardType":"","cardImageID":0,"cardImage":"","cardTitle":"","cardDesc":"","cardImageAlt":"","cardPlayer":"","cardPlayerWidth":0,"cardPlayerHeight":0,"cardPlayerStream":"","cardPlayerCodec":"","footnotes":""},"categories":[5],"tags":[],"class_list":["post-7436","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-press-release"],"yoast_head":"\nSenate Passes\u00a0Legislation to\u00a0Establish State-Based Health Insurance Exchange, Lower Healthcare Costs - Senator Sylvia Santana<\/title>\n<meta name=\"description\" content=\"Part of Senate Democrats\u2019 Healthcare You Can Afford Agenda, this legislation 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