LANSING – Michigan would comply with the federal health care reform law by setting up its health exchange – a website called the MIHealth Marketplace – under a bill passed by the Senate Thursday although Republicans then took the step of reaffirming their opposition to “Obamacare.”

Similar to Orbitz.com, under the legislation Michigan’s website would be a clearinghouse for available health insurance plans.

In passing SB 693 , all 12 Democrats cast yes votes with members saying the measure would advance access to care for thousands of Michigan small businesses, individuals and the uninsured.

Thirteen Republicans joined that group to support the bill, but did so for a different reason. GOP members said they didn’t want Michigan to be under the thumb of the federal government, should the health care reform law stand, and establishing the exchange reasserted states’ rights.

But another 12 Republicans said the bill does not provide a free market alternative, but further engrains Michigan to “Obamacare” – as detractors call the federal Affordable Care Act.

Sen. Patrick Colbeck (R-Canton Township) said he originally signed up as a co-sponsor, but withdrew that support saying the exchange was out of control.

“My alternative solution would (rein) in the scope of the ‘Exchange’ to focus on the determination of eligibility for government assistance to citizens and the definition of data exchange standards that would enable private exchanges to provide consumers with apples-to-apples comparisons of health policies. Instead, we have before us a bill that creates a MI Health Marketplace that performs ‘All Exchange Duties’ in a bill with no definition of what an exchange is,” he said. “By serving as a middle man for financial transactions, I am concerned that the exchange may actually increase insurance costs because of the potentially significant payment delay to insurance providers.”

Colbeck asserted a vote for the bill was a vote to support the federal health reform law, but Sen. James Marleau (R-Lake Orion), the sponsor, said the measure expands choices and competition in the health insurance sector.

“If the website is not used, it will just completely go out of business,” Marleau said. “Not a single Michigan tax dollar will pay for the MIHealth Marketplace.”

Instead, user fees on the health insurance providers using the website would supports its existence.

Sen. Bruce Caswell (R-Hillsdale) said while there are several unknowns, such as the pending Supreme Court arguments on the individual mandate, the legislation includes provisions for parts of the bill to be repealed if the courts rule the law unconstitutional.

He said the Senate should move the issue over to the House where discussions can continue.

The bill passed 25-12 with opposition votes coming entirely from the GOP side of the aisle: Sen. Jack Brandenburg of Harrison Township. Sen. Tom Casperson of Escanaba, Mr. Colbeck, Sen. Joe Hune of Hamburg, Sen. Mike Kowall of White Lake Township, Sen. John Moolenaar of Midland, Sen. Mike Nofs of Battle Creek, Sen. John Proos of St. Joseph, Sen. David Robertson of Grand Blanc, Sen. Tory Rocca of Sterling Heights, Sen. Tonya Schuitmaker of Lawton and Sen. Howard Walker of Traverse City.

Sen. Phil Pavlov (R-St. Clair) was absent for the vote.

The chamber then immediately took up SR 95 , which expresses support for Attorney General Bill Schuette’s lawsuit against the federal health reform. Democrats cried foul, saying Republicans couldn’t endorse a program that will help Michigan residents and then at the same time oppose the law that gets that program in place.

“I don’t think people sent us here to vote on resolutions that are nothing but political potshots,” Sen. Coleman Young II (D-Detroit) said.

Sen. Glenn Anderson (D-Westland) said Republicans who voted for SB 693 and the resolution were following “the footsteps of Mitt Romney” for choosing how to vote depending on how the wind blows.

Sen. Rick Jones (R-Grand Ledge) said he “had to hold my nose and vote to approve the exchange,” but he wanted to support the resolution to express, “We support you Bill Schuette. Fight it!.”

Senate Minority Floor Leader Tupac Hunter (D-Detroit) tried to amend the non-binding resolution by adding the words “Republican members” before the Senate portion, but Sen. Judy Emmons (R-Sheridan), who sponsored the resolution, said the amendment was unnecessary because the votes would show who favored it and who did not.

While Sen. Bert Johnson (D-Highland Park) declared the resolution (adopted 20-17) was simply an attempt to give Republicans “cover” on the issue to Tea Party conservatives, the Senate vote drew a stinging response from those groups.

Americans for Prosperity-Michigan, called the resolution “a charade.”

“I’ll put it bluntly for those lawmakers who voted in favor of this legislation,” said Scott Hagerstrom. “We view their vote to create a state healthcare exchange as a vote for President Barack Obama’s Washington health care takeover. And, we’ll be educating and mobilizing our members with this in mind.”

Tea Party member Joan Fabiano said: “The passage of SB 693 is a unnecessary set-back in the freedom of Michigan citizens. Many health care policy experts such as John Graham of the Pacific Research Institute have debunked the argument that ‘if they (legislators) do not collaborate to establish state-based exchanges, the federal government will enter their state and do it for them. Recent close reading of the law has debunked this notion. As written, the Patient Protection and Affordable Care Act (PPACA) has (at least) two clauses that will prevent this from happening.'”

But the Michigan Business and Professional Association hailed the Senate vote on SB 693.

“Creating the exchange under this state legislation will help to ensure that our members are able to maintain health insurance both on and off the exchange versus being forced into a one-size-fits-all federal exchange program,” said President and CEO Jennifer Kluge.

This story was provided by Gongwer News Service. To subscribe, click on Gongwer.Com

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