Updates About Legislation

After a lengthy session day that took place over the course of 30 hours, the Michigan legislature passed a budget for the 2026-2027 (FY 27) Fiscal Year on July 3. Following the passage, significant questions have emerged about the overall spending total of the budget. On paper, the FY 27 budget totals $75.2 billion. However, the budget authorizes $86.4 billion in spending after federal Medicaid taxes and federal K-12 appropriations were shifted into boilerplate and not included in the topline.

The budget reduces Medicaid appropriations by approximately $479.2 million, ($185 million GF/GP), mostly coming from pharmaceutical program restructuring. About $87 million in savings was assumed by using restricted funds, instead of general fund dollars for certain programs.

Much of the 30 hour marathon session was spent voting on legislation unrelated to the budget, likely part of negotiations with fellow lawmakers ahead of campaign season. Before concluding with the budget bills, the Legislature first passed 66 policy bills that were largely uncontroversial. Highlights include establishing a two-year lobbying ban for certain former elected officials and department heads (HB 4062, 4063 and HB 4064), a bill prohibiting large corporate entities who already own 100+ Michigan homes from purchasing more (HB 6074), and legislation requiring Michigan Medicaid to cover evidence-based group prenatal care services (SB 415).

A full list of the legislation passed alongside the FY 27 budget can be viewed here.

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 last 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 was required to present all nine bills to the Governor.

In a surprising twist, the Governor vetoed all nine bills on Friday. In her veto letter, Governor Gretchen Whitmer reasoned that the bills would create an administrative burden due to other conflicting laws that have since gone into effect, statutory deadlines that have expired, and fiscal impacts that were not accounted for in the newly passed FY 27 state budget.

The bills would have covered a range of issues, including requiring public employers to make greater contributions toward their employees’ health insurance, permission to seek a property tax millage for Detroit history museums, enter corrections officers into the State Police pension system, and offer 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.