The health insurance exchange is the Web-based portal through which individuals and small employer groups can comparison shop for “qualified” health insurance plans.

In November 2011 the Michigan Senate approved SB693 to set up Michigan’s exchange however, the Michigan House decided not to consider the measure until after the presidential elections on November 6th. States are required to submit a plan to run an exchange to the Federal Government by November 16th. The exchange must be functioning and available to begin accepting enrollments by October 1, 2013.

Gov. Rick Snyder has decided that in order to meet the deadlines, Michigan will accept the Federal-State Partnership to develop and run the Michigan Exchange. This brings $9.8 billion to the table in Federal Grant money for development of the Health Insurance Exchange. With this type of State-Federal partnership that Michigan could eventually convert to a fully state-run exchange.

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