MAHP & MHA Offer Four Health Care Refinement Ideas

Dominick Pallone of the Michigan Association of Health Plans (MAHP) and Brian Peters of the Michigan Health Hospital Association (MHA) recommend four refinements to improve health care affordability in Michigan.  The reinsurance recommendation is questionable, but the other three will reduce costs for individuals, if not the State of Michigan:

https://www.crainsdetroit.com/crains-content-studio/publishing-partner/cdb-mahp-mha-ideas-healthcare-affordable/

https://shvs.org/current-considerations-for-state-reinsurance-programs/

Free ideas to make healthcare affordable
By Dominick Pallone & Brian Peters - June 22, 2026

More Michiganders are taking a gamble by going without health insurance, jeopardizing their healthcare because they cannot afford the costs. While Michigan has historically maintained an uninsured rate below the national average, increases in health insurance premiums, the loss of federal healthcare tax credits and federal changes to Michigan’s Medicaid program will likely push another 200,000 Michiganders into the ranks of the uninsured, bringing the total to well over half a million.

To compound the uninsured spike, a troubling new trend among young professionals is to bet on their youth and decline employer-offered commercial health insurance. These bets can come at extremely high costs for all involved. The patient risks high out-of-pocket costs and plans suffer due to changes in the risk pool, while providers face higher rates of uncompensated care.

High costs are impacting Michiganders of all ages. Nearly 60% of older adults in Michigan are unable to afford essential prescription drug medications. Seniors with fixed incomes are now forced to choose between adhering to their treatments and other financial demands of life. This is not the American dream.

Increasing healthcare costs are forcing customers and patients to walk away from the healthcare table, feeling frustrated, annoyed and further in debt. It must stop. It is incumbent upon us to lead with solutions, rather than allowing finger-pointing.

Earlier this year, our associations brought together our teams to develop and share state-based policy ideas to lower healthcare costs in Michigan. Insurers and providers are in this crisis together and must find ways to help Michiganders stop rolling the dice with their health. We need to think creatively and focus on issues that can generate out-of-pocket savings for patients.

One such idea is reinsurance, which can be done at no cost to taxpayers. Seventeen states offer reinsurance programs to help pool costs for higher-cost medical claims. A state can establish a reinsurance program through cost savings by transitioning from a federal to a state exchange platform, at no cost to customers. States that have developed reinsurance programs have reduced premiums by an average of 16%, according to a Princeton University study.

Later this year, it is expected that Congress will pass several changes to allow small businesses and independent contractors to join broader Association Health Plans, which offer more affordable health insurance in a larger group setting. Michigan should be the first state in the nation to codify these changes into state law and preserve the expanded scope and accessibility of Association Health Plans. AHPs offer a more affordable health insurance option for small businesses, especially those in the gig economy. This is another idea that costs taxpayers nothing.

Michigan must also stop imposing taxes and mandates on health-related goods and services if it wants to prioritize healthy living. Government mandates on insurers to provide certain benefits or coverage, and regulations on hospitals to maintain mandated staffing ratios and meet various nuanced licensing requirements increase the costs of care.

One last creative idea is called a Medicaid Buy-In policy, which would allow uninsured Michiganders within a specific income threshold to purchase government-sponsored insurance that is cheaper than anything on the marketplace and could cost state taxpayers nothing. Such a policy requires federal approval but would create an important bridge for those most likely to find themselves underwater as a result of the upcoming Medicaid changes, or for those no longer able to afford individual marketplace insurance.

Overall, we need to continue to support solutions that protect access to care and help our communities. It’s time to stop Michiganders from further risking their pocketbooks and gambling on their health. It’s time to be bold and advance real reforms that will make healthcare affordable.