Michigan 2025-2026 Regular Session Status: Passed Senate 1 D cosponsors

SB 973 — Insurance: health insurers; state-based insurance exchange; provide for. Creates new act. TIE BAR WITH: SB 0977'26

Last action — referred to Committee on Insurance

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. 3
    Passed Senate
  4. 4
    Passed House
  5. 5
    To Executive
  6. 6
    Enacted

This bill has passed the Senate. Introduced June 18, 2026. It now moves to the second chamber.

Next likely step: consideration and a floor vote in the House.

Odds of enactment

Moderate chance

Based on the sponsor, cosponsors, and committee posture, this bill has a moderate chance of becoming law.

Upgrade to see the exact probability and what's driving it.

A statistical estimate from our own model of past outcomes — an insight, not a guarantee. Policymaking is volatile.

Prognosis

Advancing 48% · moderate confidence

  • Passed Senate

    Current position in the legislative process.

  • 1 sponsor

    1 primary, 0 co-sponsors signed on.

  • Single-party support

    Sponsorship is currently within one party (1 D).

  • Cleared a recorded vote

    Passed 1 recorded vote so far.

Based on stage, sponsorship breadth, committee status, recorded votes, and cross-state momentum — a description of the observable signals, not a prediction.

In plain language

This bill establishes a state-based health insurance exchange.

The bill creates a new act for health insurers to operate a state-based insurance exchange. This exchange aims to facilitate the buying and selling of health insurance in the state.

What this means for you
  • Consumers: This means you may have more options and easier access to health insurance plans through a state-run exchange.

Summary

Insurance: health insurers; state-based insurance exchange; provide for. Creates new act. TIE BAR WITH: SB 0977'26

Bill Text

What changed in the latest version

326 added · 329 removed

Plain-language change summary

The amendment to Senate Bill 973 clarifies the language regarding financial benefits or drawbacks associated with the actions of an exchange. It specifies that these pecuniary benefits or detriments must directly apply in the same way to a whole class of people in the state, rather than allowing exceptions for immediate family members. This change is important because it aims to prevent conflicts of interest and ensure fairness in how health benefits are managed, promoting transparency in the exchange's operations.

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SUBSTITUTE FOR SENATE BILL NO.
SB-973, As Passed Senate, June 18, 2026 SUBSTITUTE FOR SENATE BILL NO.
The exchange shall foster a competitive market for health insurance in this state and serve as a market facilitator to promote the purchase and sale of qualified health DAW S02325'25 (S-1) du670k 1 plans and to disseminate information regarding qualified health plans to health benefit plan consumers.
The exchange shall foster a competitive market for health insurance in this state and serve as a market facilitator to promote the purchase and sale of qualified health DAW S02325'25 (S-2)_SB973_APS_1 vytfw7 1 plans and to disseminate information regarding qualified health plans to health benefit plan consumers.
(b) "Conflict of interest" means that by taking any action or making any decision or recommendation on a matter within the authority of the board, a member of the board, or an immediate family member, or any entity with which the member is affiliated, or an immediate family member, would receive a pecuniary benefit or detriment, unless the pecuniary benefit or detriment would apply to the same degree to a class consisting of all persons within the particular class in this state.
(b) "Conflict of interest" means that by taking any action or making any decision or recommendation on a matter within the authority of the board, a member of the board, or an immediate family member, or any entity with which the member is affiliated, or an immediate family member, would receive a direct pecuniary benefit or detriment, unless the direct pecuniary benefit or detriment would apply to the same degree to a class consisting of all persons within the particular class in this state.
(g) "Facilitate enrollment" means to perform an act that is only indirectly related to the sale, solicitation, or negotiation of a health insurance policy and is to inform an individual of the individual's eligibility for public assistance or to inform an individual that the individual can purchase a health insurance DAW S02325'25 (S-1) du670k 1 policy through a producer, the marketplace, a carrier offering a qualified health plan, or another source, which act is in compliance with federal law, state law, and the purposes of this act.
(g) "Facilitate enrollment" means to perform an act that is only indirectly related to the sale, solicitation, or negotiation of a health insurance policy and is to inform an individual of the individual's eligibility for public assistance or to inform an individual that the individual can purchase a health insurance DAW S02325'25 (S-2)_SB973_APS_1 vytfw7 1 policy through a producer, the marketplace, a carrier offering a qualified health plan, or another source, which act is in compliance with federal law, state law, and the purposes of this act.
(v) Any other entity providing a plan of health insurance, DAW S02325'25 (S-1) du670k 1 health benefits, or health services.
(v) Any other entity providing a plan of health insurance, DAW S02325'25 (S-2)_SB973_APS_1 vytfw7 1 health benefits, or health services.
DAW S02325'25 (S-1) du670k 1 (a) "SHOP" means the small business health options program established by the exchange under section 211.
DAW S02325'25 (S-2)_SB973_APS_1 vytfw7 1 (a) "SHOP" means the small business health options program established by the exchange under section 211.
(b) One member, subject to advice and consent of the senate, from among the carriers that offer health insurance policies through the exchange that are not a hospital plan corporation, a professional health services plan corporation, or a parent, affiliate, subsidiary, or other associated entity or successor of a DAW S02325'25 (S-1) du670k 1 hospital plan corporation or a professional health services plan.
(b) One member, subject to advice and consent of the senate, from among the carriers that offer health insurance policies through the exchange that are not a hospital plan corporation, a professional health services plan corporation, or a parent, affiliate, subsidiary, or other associated entity or successor of a DAW S02325'25 (S-2)_SB973_APS_1 vytfw7 1 hospital plan corporation or a professional health services plan.
(h) One member, subject to advice and consent of the senate, appointed from a list of 3 candidates provided by the minority DAW S02325'25 (S-1) du670k 1 leader of the house of representatives, who has relevant experience in health benefits administration, health care finance, health plan purchasing, health care delivery system administration, public health, or health policy issues related to the small group and individual markets and the uninsured.
(h) One member, subject to advice and consent of the senate, appointed from a list of 3 candidates provided by the minority DAW S02325'25 (S-2)_SB973_APS_1 vytfw7 1 leader of the house of representatives, who has relevant experience in health benefits administration, health care finance, health plan purchasing, health care delivery system administration, public health, or health policy issues related to the small group and individual markets and the uninsured.
For the initial members appointed under subsection (2), 2 members must be appointed for 2- year terms, 5 members must be appointed for 3-year terms, and 3 DAW S02325'25 (S-1) du670k 1 members must be appointed for 4-year terms.
For the initial members appointed under subsection (2), 2 members must be appointed for 2- year terms, 5 members must be appointed for 3-year terms, and 3 DAW S02325'25 (S-2)_SB973_APS_1 vytfw7 1 members must be appointed for 4-year terms.
The board shall include in the code of ethics policies and procedures requiring the disclosure of relationships that may give rise to a conflict of DAW S02325'25 (S-1) du670k 1 interest.
The board shall include in the code of ethics policies and procedures requiring the disclosure of relationships that may give rise to a conflict of DAW S02325'25 (S-2)_SB973_APS_1 vytfw7 1 interest.
Before formation of the exchange, the director may take any action DAW S02325'25 (S-1) du670k 1 necessary to effect a timely transition from a federally administered exchange to the exchange established under this act, including, but not limited to, taking steps that are necessary to facilitate a state-based exchange on the federal platform that will operate until the director determines that the exchange organized under this act is adequately prepared to operate on the marketplace.
Before formation of the exchange, the director may take any action DAW S02325'25 (S-2)_SB973_APS_1 vytfw7 1 necessary to effect a timely transition from a federally administered exchange to the exchange established under this act, including, but not limited to, taking steps that are necessary to facilitate a state-based exchange on the federal platform that will operate until the director determines that the exchange organized under this act is adequately prepared to operate on the marketplace.
DAW S02325'25 (S-1) du670k 1 (f) To elect or appoint officers, employees, and other agents of the exchange, to prescribe their duties, to fix their compensation and the compensation of corporate directors, and to indemnify corporate directors, officers, employees, and agents.
DAW S02325'25 (S-2)_SB973_APS_1 vytfw7 1 (f) To elect or appoint officers, employees, and other agents of the exchange, to prescribe their duties, to fix their compensation and the compensation of corporate directors, and to indemnify corporate directors, officers, employees, and agents.
(k) To establish and carry out savings, thrift, and other incentive and benefit plans, trusts, and provisions for any of its DAW S02325'25 (S-1) du670k 1 corporate directors, officers, and employees.
(k) To establish and carry out savings, thrift, and other incentive and benefit plans, trusts, and provisions for any of its DAW S02325'25 (S-2)_SB973_APS_1 vytfw7 1 corporate directors, officers, and employees.
(3) Other than a power or duty under section 261 of the nonprofit corporation act, 1982 PA 162, MCL 450.2261, the exchange has the powers and duties of a nonprofit corporation under the DAW S02325'25 (S-1) du670k 1 nonprofit corporation act, 1982 PA 162, MCL 450.2101 to 450.3192.
(3) Other than a power or duty under section 261 of the nonprofit corporation act, 1982 PA 162, MCL 450.2261, the exchange has the powers and duties of a nonprofit corporation under the DAW S02325'25 (S-2)_SB973_APS_1 vytfw7 1 nonprofit corporation act, 1982 PA 162, MCL 450.2101 to 450.3192.
DAW S02325'25 (S-1) du670k 1 (4) The exchange shall not make available any health benefit plan that is not a qualified health plan.
DAW S02325'25 (S-2)_SB973_APS_1 vytfw7 1 (4) The exchange shall not make available any health benefit plan that is not a qualified health plan.
(6) A carrier shall not offer in any service area more than 4 nonstandardized plan options per any of the following:
(a) Network type.
(b) Metal level other than catastrophic plans.
(c) Inclusion of dental benefit coverage or vision benefit coverage, or both.
(b) Implement procedures consistent with section 215 for the certification, recertification, and decertification of health DAW S02325'25 (S-1) du670k 1 benefit plans as qualified health plans.
(b) Implement procedures consistent with section 215 for the certification, recertification, and decertification of health benefit plans as qualified health plans.
(ii) Contract with qualified vendors to provide technology, implementation, maintenance, and enhancement services needed to operate the exchange.
(ii) Contract with qualified vendors to provide technology, DAW S02325'25 (S-2)_SB973_APS_1 vytfw7 1 implementation, maintenance, and enhancement services needed to operate the exchange.
(iii) If the governor declares a state of emergency or state of disaster under the emergency management act, 1976 PA 390, MCL 30.401 to 30.421, provide an enrollment period that a majority of the board determines is necessary as a result of the declaration of DAW S02325'25 (S-1) du670k 1 a state of emergency or state of disaster.
(iii) If the governor declares a state of emergency or state of disaster under the emergency management act, 1976 PA 390, MCL 30.401 to 30.421, provide an enrollment period that a majority of the board determines is necessary as a result of the declaration of a state of emergency or state of disaster.
(f) Maintain an internet website through which enrollees and prospective enrollees of qualified health plans may obtain standardized comparative information on the plans.
(f) Maintain an internet website through which enrollees and prospective enrollees of qualified health plans may obtain DAW S02325'25 (S-2)_SB973_APS_1 vytfw7 1 standardized comparative information on the plans.
(l) Establish and make available by electronic means a DAW S02325'25 (S-1) du670k 1 calculator to determine the actual cost of coverage after application of any premium tax credit under section 36B of the internal revenue code of 1986, 26 USC 36B, and any cost-sharing reduction under section 1402 of the federal act.
(l) Establish and make available by electronic means a calculator to determine the actual cost of coverage after application of any premium tax credit under section 36B of the internal revenue code of 1986, 26 USC 36B, and any cost-sharing reduction under section 1402 of the federal act.
(m) Adopt an annual operating revenue and expense budget before the start of each fiscal year and make the budget available on its website.
(m) Adopt an annual operating revenue and expense budget before the start of each fiscal year and make the budget available DAW S02325'25 (S-2)_SB973_APS_1 vytfw7 1 on its website.
DAW S02325'25 (S-1) du670k 1 (iii) Assist individuals in applying for advance payments of premium tax credits under section 36B of the internal revenue code of 1986, 26 USC 36B, and cost-sharing reductions under section 1402 of the federal act.
(iii) Assist individuals in applying for advance payments of premium tax credits under section 36B of the internal revenue code of 1986, 26 USC 36B, and cost-sharing reductions under section 1402 of the federal act.
(s) Subject to terms and conditions determined by the exchange, allow a federally recognized Indian tribe to pay premiums for qualified health plans on behalf of tribal members who are qualified individuals enrolled in a qualified health plan.
(s) Subject to terms and conditions determined by the exchange, allow a federally recognized Indian tribe to pay premiums DAW S02325'25 (S-2)_SB973_APS_1 vytfw7 1 for qualified health plans on behalf of tribal members who are qualified individuals enrolled in a qualified health plan.
DAW S02325'25 (S-1) du670k 1 (x) If the exchange establishes a SHOP under subsection (2), notify employees using the SHOP of potential eligibility for a state medical assistance program.
(x) If the exchange establishes a SHOP under subsection (2), notify employees using the SHOP of potential eligibility for a state medical assistance program.
(y) Ensure that all enrollee information possessed by any person associated with the exchange is protected as required by the health insurance portability and accountability act of 1996, Public Law 104-191.
(y) Ensure that all enrollee information possessed by any person associated with the exchange is protected as required by the health insurance portability and accountability act of 1996, Public DAW S02325'25 (S-2)_SB973_APS_1 vytfw7 1 Law 104-191.
However, a qualified individual or qualified employer must not be penalized, either by premium cost or coverage under a health benefit plan, for choosing to use the DAW S02325'25 (S-1) du670k 1 services of a producer.
However, a qualified individual or qualified employer must not be penalized, either by premium cost or coverage under a health benefit plan, for choosing to use the services of a producer.
The audit committee members shall not have contractual relationships with the external auditor other than for the exchange audit.
The audit committee members shall not have contractual relationships DAW S02325'25 (S-2)_SB973_APS_1 vytfw7 1 with the external auditor other than for the exchange audit.
Subject to subsection (2), the director shall certify a health insurance DAW S02325'25 (S-1) du670k 1 policy as a qualified health plan if the health benefit plan meets the requirements of federal law, state law, and the purposes of this act.
Subject to subsection (2), the director shall certify a health insurance policy as a qualified health plan if the health benefit plan meets the requirements of federal law, state law, and the purposes of this act.
(3) The director shall require each carrier seeking certification of a health insurance policy as a qualified health plan to do all of the following:
DAW S02325'25 (S-2)_SB973_APS_1 vytfw7 1 (3) The director shall require each carrier seeking certification of a health insurance policy as a qualified health plan to do all of the following:
(b) Permit determination, in a timely manner on the request of the individual, the level of cost-sharing, including deductibles, copayments, and coinsurance, under the individual's plan or coverage that the individual would be responsible for paying with DAW S02325'25 (S-1) du670k 1 respect to the furnishing of a specific item or service by a participating provider.
(b) Permit determination, in a timely manner on the request of the individual, the level of cost-sharing, including deductibles, copayments, and coinsurance, under the individual's plan or coverage that the individual would be responsible for paying with respect to the furnishing of a specific item or service by a participating provider.
(4) The provisions of this act that are applicable to qualified health plans apply to the extent relevant to qualified dental plans except as modified in this subsection or by the board as permitted by the federal act.
(4) The provisions of this act that are applicable to qualified health plans apply to the extent relevant to qualified DAW S02325'25 (S-2)_SB973_APS_1 vytfw7 1 dental plans except as modified in this subsection or by the board as permitted by the federal act.
(1) Subject to section 221, the exchange shall charge assessments or user fees and collect fees from carriers to support the operation of the exchange under this act and the reinsurance program established under section 3406nn of the insurance code of 1956, 1956 PA 218, MCL 500.3406nn, except that the exchange shall not assess or collect any form of obligation other than an exchange user fee on total monthly premiums for DAW S02325'25 (S-1) du670k 1 exchange policies and unless approved by unanimous consent of the board, the fee must not exceed the user fee for the federally facilitated marketplace plus or minus 1% of total monthly premiums for on-exchange policies.
(1) Subject to section 221, the exchange shall charge assessments or user fees and collect fees from carriers to support the operation of the exchange under this act and the reinsurance program established under section 3406nn of the insurance code of 1956, 1956 PA 218, MCL 500.3406nn, except that the exchange shall not assess or collect any form of obligation other than an exchange user fee on total monthly premiums for exchange policies and unless approved by unanimous consent of the board, the fee must not exceed the user fee for the federally facilitated marketplace plus or minus 1% of total monthly premiums for on-exchange policies.
The exchange may generate funding necessary to support its operations under this act.
The exchange may generate funding DAW S02325'25 (S-2)_SB973_APS_1 vytfw7 1 necessary to support its operations under this act.
(5) The department of insurance and financial services shall expend money from the fund to do either of the following:
(5) The department of insurance and financial services shall expend money from the fund to do all of the following:
DAW S02325'25 (S-1) du670k 1 (a) Operate the exchange.
(a) Operate the exchange.
Sec.
(c) To operate and fund a reinsurance program described in 3406nn of the insurance code of 1956, 1956 PA 218, MCL 500.3406nn.
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Action History

  1. 6/18/2026 - referred to Committee on Insurance

Sponsors

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 146 not signed on · 16 voted No

Sponsors (1)

Co-sponsors (0)

None.

Not signed on (146)

146 members have not signed on to this bill.

Show all 146 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

PASSED ROLL CALL # 143 YEAS 20 NAYS 16 EXCUSED 2 NOT VOTING 0

Passed 20 Yea · 16 Nay · 2 Other
Party YeaNayPresentNot Voting
Democrat 20000
Republican 01602
Total 201602
% of votes cast 53%42%0%5%
How each member voted (38)
Member Party Vote
Chedrick Greene Democrat Yea
Darrin Camilleri Democrat Yea
Dayna Polehanki Democrat Yea
Erika Geiss Democrat Yea
Jeff Irwin Democrat Yea
Jeremy Moss Democrat Yea
John Cherry Democrat Yea
Kevin Hertel Democrat Yea
Mallory McMorrow Democrat Yea
Mary Cavanagh Democrat Yea
Paul Wojno Democrat Yea
Rosemary Bayer Democrat Yea
Sam Singh Democrat Yea
Sarah Anthony Democrat Yea
Sean McCann Democrat Yea
Stephanie Chang Democrat Yea
Sue Shink Democrat Yea
Sylvia Santana Democrat Yea
Veronica Klinefelt Democrat Yea
Winnie Brinks Democrat Yea
Aric Nesbitt Republican Nay
Dan Lauwers Republican Nay
Edward McBroom Republican Nay
Jim Runestad Republican Not Voting
John Damoose Republican Nay
Jon Bumstead Republican Nay
Jonathan Lindsey Republican Nay
Joseph Bellino Jr. Republican Nay
Kevin Daley Republican Nay
Lana Theis Republican Nay
Mark Huizenga Republican Nay
Michael Webber Republican Nay
Michele Hoitenga Republican Nay
Rick Outman Republican Nay
Roger Hauck Republican Nay
Roger Victory Republican Not Voting
Ruth Johnson Republican Nay
Thomas Albert Republican Nay

Official roll call →

Subjects

healthcare health-insurance
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

What does SB 973 do?
Insurance: health insurers; state-based insurance exchange; provide for. Creates new act. TIE BAR WITH: SB 0977'26
Who sponsors SB 973?
SB 973 is sponsored by Kevin Hertel (Democrat).
What is the current status of SB 973?
This bill has passed the Senate. Introduced June 18, 2026. It now moves to the second chamber.
Where can I track SB 973?
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