Updates About Legislation

A procedural mistake made during Lame Duck when nine passed bills were not presented to the Governor before concluding the 2023-2024 legislative session will finally be put to rest. While the 103rd Legislature was still settling in at the start of 2025, Speaker Matt Hall (R-Richland Township) made the strategic decision to refuse presenting to the Governor several bills passed during Lame Duck by the previous Democrat-majority House.

After more than a year of ambiguity, the Supreme Court announced this week that they will not be making a decision on the case, instead deferring to the Court of Appeals’ previous ruling. Under the lower court’s ruling, the Michigan House is required to present all nine bills to the Governor. If signed by the Governor, these bills will cover a range of issues, including requiring public employers to make contributions toward their employees’ health insurance, permission to seek a property tax millage for Detroit history museums, adjustments to pensions for corrections officers, and protections for various public benefits from the threat of debt garnishment.

Related Articles: HOUSE MUST SEND 9 LEFTOVER BILLS FROM PREVIOUS LEGISLATURE TO THE GOVERNOR • SUPREME COURT: SENATE LAWSUIT OVER HOUSE BILLS WILL GO THROUGH USUAL LEGAL PROCESS • BRINKS SEEKS SUPREME COURT RULING AND MAKES SENATE RULE CHANGE IN ONGOING FIGHT OVER HOUSE BILLS • MICHIGAN HOUSE DECLINES TO SEND NINE BILLS TO GOVERNOR • SENATE DEMOCRATS FILE LAWSUIT AGAINST SPEAKER HALL

The Michigan Senate has passed a package of bills that would create a state-based healthcare exchange in Michigan. Similar legislation was also passed by the Senate last session. If passed, Michigan would move away from the federal healthcare exchange to a newly created exchange run by the state by January 2028.

SB 973 would create the Michigan Health Insurance Exchange and outlines the creation of a 12-member governing board, which would create and oversee a non-profit corporation that provides the health plan marketplace. It also outlines governance, oversight, funding, reporting, and enrollment requirements for the exchange, while requiring the Department of Insurance and Financial Services (DIFS) to certify the qualified health plans according to State and Federal law and the provisions of the legislation.

SB 974updates insurance code definitions to align with the state-based health insurance exchange created under SB 973.

SB 975 requires DIFS to contract with the state-based exchange to certify qualified health and dental plans.

SB 976 would require insurers to provide enrollment information required by the state-based exchange.

SB 977 requires DIFS to apply for a federal waiver to create a state-based reinsurance program and report funding needs to the Legislature’s appropriations committees.

SB 978 repeals a law requiring certain health insurance plans to cover specific emergency and early prescription refills.

Each bill passed along party lines (20-16). The bills need to be passed by the Republican controlled House and signed into law by the Governor before the current session ends in December or would need to be reintroduced again next session.

After a slight delay in finalizing budget targets, a recent late night negotiation session has resulted in a framework agreement for the 2026-2027 (FY 27) fiscal year.

With broad targets reached, lawmakers remained in Lansing through the weekend to continue their negotiations. Latest reports indicate negotiations are moving along in department funding but have not yet reached funding for Legislatively Directed Spending Items (LDSIs). In total, lawmakers have requisition over $4.3 billion in these special projects. Under a law passed last November, all LDSIs must now be made public at least 45 days before the budget is approved by the Legislature. Due to this new law, any requests submitted after May 18 cannot be included if the budget passes by July 1.

The budget is expected to be smaller than last year’s and will reportedly not include new revenue streams or tax increases, meaning spending cuts are likely in some areas. Though Speaker Hall has made property tax cuts a top priority, indications show it is unlikely to be packaged in with the budget.

Another item that could be negotiated as the budget moves along are the House or Senate version of medical debt relief bills. Both chambers introduced identical legislation, HB 5254 and HB 5255, equivalent to SB 701 and SB 702 would cap the maximum interest rate on medical debt and prohibit wage garnishment or home foreclosure due to medical debt.

While many were hopeful that the budget would be done by July 1, it is becoming more likely that we will see a completed around July 3, just ahead of Independence Day weekend.