LANSING – Gov. Jennifer Granholm will propose Wednesday night in her state of the state address state-backed, but privately issued, health insurance for working adults with household incomes up to $38,700. Some 500,000 adults in Michigan could be covered under the plan.
The proposal would be paid for with some of the money Michigan has saved the federal government by wringing out the inefficiencies in Medicaid. A wellness caveat would be part of the package, requiring those insured to engage in healthier behavior. Those covered under the plan also would be expected to contribute something to the premiums, unless they fall under the federal poverty income limits.
Boyd emphasized that the proposal would not provide Medicaid coverage as well. It would be health insurance using private companies for families with incomes up to $38,700.
Michigan has one of the highest number of adults with health insurance through their employers, there are still about 1 million adults in Michigan who don’t have health insurance.
The state has saved the federal government some $2 billion over the last decade by more efficiently managing the Medicaid program, Boyd said. Now the state is asking the federal government to reinvest those savings in providing health insurance to more working Michigan adults.
Granholm has already discussed the proposal with U.S. Health and Human Services Secretary Michael Leavitt, the former governor of Utah, Boyd said.
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