By putting many of the same protections enjoyed by Michigan
small employers in place for individual purchasers of health
insurance, the legislation promotes long-term affordability
and access. From creating a level playing field for insurers,
to creating a common-sense pricing structure and preventing
drastic rate hikes because of illness, these bills help protect
Michigan residents.
These are the same common sense solutions that were implemented
to improve health insurance for small businesses. These solutions
worked for small businesses; they’ll work for individuals
seeking coverage.
Market reform
works
Four years ago, the Michigan Legislature changed the laws
that regulate insurance coverage for people who work for a
small business and receive health insurance through their
employers. These laws have effectively helped improve the
security and affordability of health coverage for them by
holding down the rate of premium increases, creating healthy
competition among insurers, and spurring them to offer more
coverage options.
Unfortunately, there is no such security today for anyone
getting coverage on their own. As the economy changes, more
people will be without insurance through their employers and
find themselves buying their own insurance. That’s why
we need reform — to make sure the same successful protections
are extended to everyone.
The Michigan Insurance Commissioner reviewed small group reforms
and called them successful. They stabilized the market, moderated
rates and increased competition. Reforms will provide the
same results for the individual insurance market. The legislation
stabilizes the entire insurance market in the long term.
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