Updates About Health Insurance

Small businesses across Michigan are feeling the pressure of rising health care costs, with many reporting a direct impact on their ability to expand and bring on new employees. In a recent survey conducted by the Small Business Association of Michigan (SBAM), over three-quarters of respondents said the cost of offering health insurance has made hiring more difficult. More than half have already scaled back or eliminated benefits, and 83% said the expense is eating into resources they would otherwise invest in growing their business.

Even so, most small business owners still see health benefits as essential for keeping employees satisfied and onboard, with 91% calling them a key part of employee retention. Yet, affordability remains a major hurdle. Nearly 70% of employers reported that their health insurance premiums increased by more than 10% in the past year. Cost drivers such as hospital fees, prescription drug prices, and administrative overhead are pushing premiums higher, while only a small share of employers—about 10%—are negotiating directly with insurers. Many rely on high-deductible plans or higher employee contributions to make do. Industry leaders continue to urge a systemwide response to tackle rising costs, prevent further strain on local shops, and maintain health care coverage for small business employees.

Michigan parents, health providers, and advocates came together at the Capitol last week urging legislators to safeguard Medicaid in the face of proposed federal funding cuts. During a Senate Health Policy Committee hearing, members of the Protect MI Care — a coalition of 240+ organizations working to preserve access to health care — shared personal stories illustrating how essential Medicaid has been to their families’ survival and stability. Two mothers from Grand Rapids spoke about how Medicaid coverage made it possible to care for their medically complex children, one born with a serious heart defect necessitating open heart surgery, the other living with cerebral palsy and epilepsy. Both emphasized that Medicaid was not a “handout,” but a vital safety net that filled gaps private insurance did not cover. Coalition leaders and health experts warned that the proposed cuts would threaten access to care across Michigan, particularly in vulnerable and rural communities.

A Senate panel has approved a package of bills aimed at addressing disparities in maternal health care for the second time. The bipartisan-supported package is championed by Senators Erika Geiss (D-Taylor), Mary Cavanagh (D-Redford Township), Stephanie Chang (D-Detroit), and Sarah Anthony (D-Lansing). Together, the bills seek to close gaps in care and combat systemic inequities that have led to higher maternal and infant mortality rates.

Key provisions of the Maternal Health Care Package include:

• Bias & Discrimination Reporting (SB 29, SB 30, SB 34 – Mandates the Department of Health and Human Services (DHHS) to collect and report data on perinatal care bias and amend civil rights laws to protect pregnant individuals.
• Hospital & Insurance Requirements (SB 31, SB 32, SB 33 – Ensures hospitals stabilize laboring patients before discharge and requires insurers to disclose perinatal care policies.
• Midwife & Medicaid Access (SB 36, SB 37, SB 38, SB 39 – Expands midwife loan repayment programs, mandates insurance reimbursement for midwives, and increases Medicaid coverage for maternal health services.
• Technical Amendments (SB 31, SB 37) – Adjustments were made to eliminate redundant reporting requirements and ensure midwives are included in insurance networks.