Mich. Gov. Whitmer Directs Health Insurance Companies to Help Lower Health Insurance Costs for Michiganders Under Inflation Reduction Act

LANSING, Michigan, Aug. 19 -- Gov. Gretchen Whitmer, D-Michigan, issued the following news release and letter on Aug. 18, 2022:

Governor Gretchen Whitmer sent a letter directing the Michigan Department of Insurance and Financial Services (DIFS) to require Michigan health insurance companies to reduce their previously filed health insurance rates for 2023. This is possible because of an extension of premium subsidies under the Inflation Reduction Act, which are already saving enrolled Michiganders nearly $800 a year on health insurance. Governor Whitmer advocated for extending these critical subsidies for months and her administration will continue working with federal partners and insurers to lower costs for families.

"Michiganders need high-quality, affordable health care more than ever," said Governor Whitmer. "That's why I was proud to stand with my fellow governors to request an extension of these critical subsidies that save hundreds of thousands of Michiganders an average of $800 a year, and why I was pleased to see the cost savings signed into law as part of the Inflation Reduction Act. I will work with anyone to lower costs for families on health care, prescription drugs, and other kitchen-table essentials. Let's work together to lower people's premiums and put money back in their pockets."

"Pursuant to the Governor's directive, DIFS is issuing guidance requiring insurers to file health insurance rate revisions, reflecting appropriate actuarially-justified reductions," said DIFS Director Anita Fox. "Extending the American Rescue Plan subsidies until 2025 means more people, including middle income families, will be able to afford health insurance. For more information about health insurance, contact DIFS at 877-999-6442 or visit Michigan.gov/HealthInsurance for more information."

The bipartisan Inflation Reduction Act of 2022, signed by President Biden earlier this week, will lower the cost of health care, prescription drugs, and energy. One key provision is the extension of subsidies for consumers who purchase coverage on the Health Insurance Marketplace. Established under the Affordable Care Act and later expanded by the American Rescue Plan, these subsidies have enabled 4 out of 5 enrolled Americans to find health coverage for less than $10 per month on HealthCare.gov. So far in 2022, more than 260,000 Michiganders took advantage of extended tax subsidies, saving them an average of $800 a year.

In addition to the direct monthly savings they offer, the extension of these subsidies for the upcoming open enrollment period will reduce costs overall for 2023 plans. These subsidies make obtaining health insurance a more affordable, and therefore more attractive, option, even for people with lower expected health care needs. As healthier people sign up for health insurance, the overall risk pool for health insurers improves, and under Governor Whitmer's directive, insurers are required to pass those savings on to Michigan families when they purchase a policy on the Health Insurance Marketplace later this year.

Open enrollment for 2023 health insurance is currently scheduled to begin on November 1, 2022. Michiganders can obtain coverage by visiting the Health Insurance Marketplace or by calling 800-318-2596 (TTY: 1-855-889-4325). During open enrollment, Michiganders will be able to choose from 233 health plans on the Marketplace, 59 more than last year. For the overall individual market, which includes off-Marketplace plans, 308 plans will be available, 52 more than last year.

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August 18, 2022

To: Director Anita Fox, Department of Insurance and Financial Services, P.O. Box 30220, Lansing, MI 48909-7720

Dear Director Fox:

I am writing today to direct the Michigan Department of Insurance and Financial Services (DIFS) to require health insurers that sell policies on the Health Insurance Marketplace to submit rate revisions in light of the recently signed Inflation Reduction Act. The new law extended insurance premium subsidies, which are currently saving hundreds of thousands of Michiganders nearly $800 a year. I have been advocating for an extension of these lifesaving subsidies for months, and I am proud that they have been included in the law.

In addition to extending health insurance premium subsidies for hundreds of thousands of Michiganders, the Inflation Reduction Act will lower the cost of prescription drugs, health care, and energy, offer a middle-class tax credit to help families buy electric vehicles made in Michigan, and create millions of manufacturing jobs.

The renewed availability of the enhanced subsidies means that many Michiganders who purchase health insurance coverage in the Marketplace can take advantage of lower premiums. The subsidies, first expanded by the American Rescue Plan, have helped 80% of enrolled Americans to find health care coverage for less than $10 per month on HealthCare.gov. The extension of these subsidies will mean lower risks for insurers and translate into direct savings for Michigan families.

Today, I am instructing DIFS to require all insurers that offer coverage on HealthCare.gov to submit revised rates that reflect the cost savings as a result of enhanced subsidies. I am grateful for the partnership between my administration and the health insurers providing Michiganders with access to affordable coverage.

Thank you in advance for ensuring our health insurers comply with all efforts to pass savings onto Michigan families. Let's keep finding ways to lower costs for Michiganders.

Sincerely,

Gretchen Whitmer, Governor of Michigan

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Original text here: https://content.govdelivery.com/attachments/MIEOG/2022/08/18/file_attachments/2248146/IRA%20Letter%208.18.22.pdf