LANSING – Michigan is one of just seven states are looking to create a joint federal, state exchange for health insurance.
All states had to indicate to the federal government by this past Friday whether they would establish a health insurance exchange on their own, have one established by the federal government, or go into a joint federal/state exchange.
The exchanges are required under the federal Affordable Care Act, and are to provide an electronic marketplace for individuals and small businesses to shop for health insurance. The exchanges are to be operational on October 1, in time for the law to begin operations on January 1, 2014.
Most states opted for the federal government to establish their exchanges. A total of 26 states said they would rather the federal government handle the exchange. When the law was passed in 2010, most observers thought the states would prefer handling the exchanges themselves to maintain greater control, but for a variety of reasons, including opposition to the federal law, most states – and most of those with Republican governors – chose the federal exchange.
Governor Rick Snyder called for Michigan to create a state exchange, but the Legislature balked at doing so.
A total of 17 states and the District of Columbia said they would create their own exchanges.
The seven remaining states – Arkansas, Delaware, Illinois, Iowa, New Hampshire and West Virginia along with Michigan – said they wanted to have a joint partnership with the federal government on the exchange.
However, a number of legislators have raised questions about whether the state should have such a partnership.
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