Governor Whitmer directs health insurance companies to lower costs
LANSING, Mich. (WLUC) - Thursday, 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.
Governor Whitmer said this is possible because of an extension of premium subsidies under the Inflation Reduction Act.
“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.”
The bipartisan Inflation Reduction Act of 2022, signed by President Biden, is intended to 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 enrolled Americans to find health coverage on HealthCare.gov. So far in 2022, more than 260,000 Michiganders took advantage of extended tax subsidies.
DIFS Director Anita Fox said the department is working on providing further guidance to insurers.
“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.”
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.
To view the full letter, click here.
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