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LANSING (AP) -- The Obama administration has conditionally approved Michigan to help run a health insurance market in partnership with the federal government.

U.S. Health and Human Services Secretary Kathleen Sebelius said Thursday the online exchange will be ready for open enrollment in seven months.

Gov. Rick Snyder is trying to persuade reluctant Republicans to approve a $31 million federal grant to help set up the marketplace. It will allow people and small businesses to shop for health insurance and is a key component of the federal health care law.

Though it's being called a partnership, the exchange will be controlled mostly by the federal government. Michigan could handle some customer service functions and approve insurers wanting to offer health plans.

Some people will be eligible for federal aid to reduce their premiums.

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