Updates About Health Insurance

The Senate Finance, Insurance and Consumer Protection Committee recently took up testimony on SB 914, introduced by Stephanie Chang (D-Detroit). The bill would require prescription drug co-pay assistance to count toward a patient’s deductible and out-of-pocket maximum.

Supporters of the bill include patient advocacy groups that represent individuals with serious conditions such as cancer, blood disorders, epilepsy, and other diseases that require patients to rely on costly medications. Supporting organizations argue that the bill would reduce unexpected out-of-pocket costs for patients, while simultaneously improving affordability and transparency in drug pricing.

Opposition comes primarily from insurers and health plans, who argue the policy would influence patients to purchase more expensive brand name medications versus cheaper generic options. It has also been suggested that co-pay coupons increase the cost of brand name medications over time.

The bill is now waiting on a Committee vote.

Senate Democrats plan to reintroduce legislation to establish a state-based health insurance exchange in Michigan and create a reinsurance pool aimed at helping reduce health care costs.

The proposal would shift the state from the federally facilitated exchange under the Affordable Care Act (ACA) to a system run by Michigan, over a one-year transition period. The change would aim to lower administrative costs, allowing the state to redirect savings into other programs and efforts, such as increasing the enrollment rate in Michigan and giving the State more flexibility in managing health care.

Ryan Hunt, CEO of the Michigan Works! Association, provided testimony in the Senate Appropriations Subcommittee on LEO/MEDC this week on workforce impacts related to proposed SNAP and Medicaid work requirements. Hunt’s testimony included a request for $25 million to support implementation, noting that local offices are already experiencing increased demand and may require additional staffing to manage higher caseloads and reduce administrative errors.

Hunt also urged continued funding for the Going PRO Talent Fund at $31.8 million, so that workers who go through the program can continue to receive training and see wage increases.