Updates About Health Insurance

As open enrollment season begins, many Michigan residents can expect to see increased health insurance costs in the upcoming year. Monthly premiums for those with plans on the individual Affordable Care Act marketplace will increase by an average of 20.2%. Of the half million Michiganders with individual health insurance, nearly three quarters will see their plans increase by 15%. Folks with ACA-compliant insurance plans offered by small businesses will see an average increase of 11%. Large business plans, which rarely see steep increases, are also set for a 6.5% upsurge.

This rate hike comes as the approved individual health plans also see a decrease from 162 available plans this past year to 116 plans next year. This is expected to impact 200,000 individuals statewide who can no longer renew with their insurer.

The Senate Health Policy Committee heard testimony Wednesday on how the potential expiration of federal tax credits could affect Michigan residents. Officials warned that if Congress fails to renew the enhanced credits, about 40,000 Michiganders could lose their health insurance subsidies entirely, with many more facing steep premium increases. The committee will be considering a nonbinding resolution urging Congress and President Trump to make the credits permanent.

The ongoing Federal Government shutdown is expected to affect many areas in Michiganders lives. Notable impacts include the following:

• Nearly 30,000 civilian federal employees will be either ordered to work without pay or furloughed until Congress reaches a deal. Those ordered to work will receive back pay after the shutdown is over

• All active-duty military personnel, including the National Guard, will carry out their duties without pay

• Short term funding has been made available to both food assistance programs SNAP and Women Infants Children (WIC). Each state has received contingency funds that have estimated to be sufficient for one week of operations, however states may have additional dollars to spend. In Michigan, we are expected to have funds to continue the program for a couple weeks.

• Michiganders on Medicare and Medicaid will continue to receive benefits, but communication delays from the agency are expected

• The Veterans Health Administration, which falls under the Department of Veterans Affairs and is also Michigan’s largest employer, is expected to be 97% operational

• Retirement, disability, veterans, and health care benefits that are covered under federal programs will continue, but delays are expected due to reduced staffing

• The US Postal Service will remain open and mail is expected to arrive on time

• The Michigan Department of Education will also remain open. In a memo, State Superintendent Michael Rice explained that any issues the state needs to elevate to federal officials for guidance will likely be delayed until normal operations resume. He also noted that federal reimbursement-based funding to local schools will be delayed