FOR IMMEDIATE RELEASE
August 18, 2022
Contact: [email protected]
Governor Whitmer directs health insurance companies to help lower health insurance costs for Michiganders under the Inflation Reduction Act
LANSING, Michigan – Governor Gretchen Whitmer today sent a letter directing the Michigan Department of Insurance and Financial Services (DIFS) to require Michigan health insurance companies to reduce previously filed health insurance rates for 2023. This is possible due to an extension of premium subsidies under The Inflation Reduction Act, which already are saving enrolled Michiganders nearly $800 a year on health insurance. Governor Whitmer interceded to extend these critical subsidies for months, and her administration will continue to work with federal partners and insurers to lower costs for families.
“Michigan residents 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 reduce families’ costs of 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 submit health insurance rate revisions reflecting appropriate actuarially justified reductions,” said DIFS Director Anita Fox. “Extending America’s bailout subsidies through 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 one Inflation Reduction Act of 2022, signed by President Biden earlier this week, will cut health care, prescription drug and energy costs. One key provision is extending subsidies to consumers who buy coverage on Health insurance market. Created under the Affordable Care Act and later expanded by the America’s Rescue Plan, these subsidies have enabled 4 out of 5 enrolled Americans to find health coverage for less than $10 a month on HealthCare.gov. So far in 2022, more than 260,000 Michiganders have taken advantage of extended tax credits, saving them an average of $800 per year.
In addition to the direct monthly savings they offer, extending these subsidies for the upcoming open enrollment period will reduce the overall cost of plans through 2023. These subsidies make getting health insurance a more affordable and therefore more attractive option even for people with lower expected health 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 health insurance for 2023 is currently scheduled to begin on November 1, 2022. Michiganders can obtain coverage by visiting Health insurance market or by calling 800-318-2596 (TTY: 1-855-889-4325). During open enrollment, Michiganders will be able to choose from 233 Marketplace health plans, 59 more than last year. For the total individual market, which includes non-market plans, 308 plans will be available, up 52 from last year.
To view the entire letter, click here.