LANSING – The Michigan House Appropriations Committee took the first step in setting up a federally mandated health insurance exchange under the Affordable Care Act on Wednesday when it approved appropriating federal funds for a federal-state partnership.

The committee voted 24-3 to report HB 4111 , which would accept $30.67 million in federal grant money to set up the partnership. The overwhelming vote comes after weeks of Republicans voicing skepticism about appropriating the money for the exchange and after the House GOP blocked a state-run exchange in the previous term.

If established, Michigan would be one of seven states with a state-federal partnership.

Rep. Martin Howrylak (R-Troy) voted no, and said during committee he has not been able to read the grant being offered. “I cannot, in good conscious, support anything I haven’t had access to,” he said.

Rep. Jon Bumstead (R-Newaygo) and Rep. Nancy Jenkins (R-Clayton) also voted no.

The money appropriated by the bill would be available until January 17, 2014, and would be used to create an online health care exchange by October 1, when enrollment would begin. The exchanges, which allow residents to compare different health insurance providers, become effective January 1, 2014.

The Department of Licensing and Regulatory Affairs would be required to utilize Michigan-based insurance agents and other state resources under the bill. The department also would be required to provide a detailed spending report relating to the grant funds.

The bill also says insurers would not be required to offer products exclusively through the health exchange.

Rep. Greg MacMaster (R-Kewadin) said accepting the grant money will make Michigan better. The state cannot fund everything itself, and to emphasize his point, he said everyone in the committee room had a loan from the bank because they cannot fund everything themselves.

“How about students who are going to college, that are going for scholarships and federal grants?” MacMaster asked. “They’re using the federal grant money to be able to better themselves in education so they can do better in their lives. Why should this grant be any different? It positions Michigan to do better things.”

Rep. Anthony Forlini (R-Harrison Township), and other Republicans on the committee, are skeptical of the exchange, but he said having some regulatory control over an exchange is better than no control.

“Face it; we’re middle management in this. And either we’re going to accept that or we’re going to turn it all over and let someone else drive this car,” Forlini said. “This is going to hurt to do this, don’t get me wrong. What isn’t going to hurt? This is at least is going to take away some of the pain.”

Rep. Joe Haveman (R-Holland), chair of the committee, said in a statement implementing this “big-government” health care program is not something he would do willingly. But since President Barack Obama has been re-elected and the U.S. Supreme Court ruled the Affordable Care Act constitutional, his other options are exhausted.

“Choosing the state-federal partnership will lower costs for Michigan taxpayers and retain as much local control as possible over this federal overreach,” Haveman said. “We must do the right thing and make the smart, responsible decision for Michigan’s hard-working taxpayers. Given the options we have in front of us, this is simply the best thing we can do.”

Rep. Rashida Tlaib (D-Detroit), minority vice chair of the committee, said in a statement the exchange will make it easier for residents to compare health insurance policies.

“Finally approving this federal funding to create our health care exchange means that Michiganders will be able to benefit from the Affordable Care Act, and Michigan won’t have to bear all the cost,” Tlaib said. “This is a win-win situation for our state, and I’m glad we can finally move forward on our health care exchange.”

The Michigan Business and Professional Association also released a statement that it supports the approval of the bill.

“We have been steadily encouraging the House to appropriate these funds so the Department of Licensing and Regulatory Affairs can begin their work on keeping Michigan in step with the law,” said Bonnie Bochniak, government relations vice president for MBPA, in a statement. “We are encouraged that this has made it through the House Appropriations process and hope for the same positive action on the House floor.”

Later in the day, the bill was advanced to Third Reading in the full House and Ari Adler, spokesperson for House Republicans, said he expects a vote Thursday.

Americans for Prosperity-Michigan, which staunchly opposes the exchange, blasted the action in support of the “horrifying” Affordable Care Act.

“Anyone who votes for this is giving approval and owns the resulting negative consequences of Obamacare,” the group said in a posting from its Twitter account.

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