Business Briefing: What changes in the Michigan Health Insurance Marketplace mean for your business and employees in 2018


When Senator Susan Collins of Maine announced earlier this week that she would not support the Graham-Cassidy bill, it became clear that the Affordable Care Act will remain in place for the near future. However, there have been changes in the Michigan individual health insurance market. Here’s what you need to know as you consider coverage for yourself and your employees (benefits) in 2018.

Two insurers remain on the Michigan exchange

If you buy health insurance through the state insurance exchange (also known as the marketplace) you’ll have access to two providers: Blue Cross Blue Shield of Michigan and Priority Health. Health Alliance Plan has withdrawn from the marketplace for 2018 and will only sell individual policies directly. (Source: MiBiz)

Rates will jump 28%

Individual rates are expected to rise an average of 27.6% in 2018, according to the Detroit News. The rise is largely due to the assumption that cost-sharing subsidies currently funded by the Federal government will end. Individuals will have to cover the cost of the entire premium out of pocket.

If cost-sharing subsidies continue in 2018, State Insurance Director Patrick McPharlin hopes insurers will be allowed to charge lower rates.

Shorter open enrollment this year

Open enrollment for 2018 marketplace plans begins on November 1, 2017, and continues through December 15, 2017. It’s worth noting that the enrollment period is significantly shorter than last year when people had until the end of January to sign up.

With higher rates and a shorter enrollment period, business owners will want to start preparing for 2018 health insurance right away.

Do you have business banking questions? Contact our knowledgeable Business Development Managers or call 800-991-2221. We’re here to help you grow your business!

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