Health Insurance Marketplace: Michigan 2020 rate analysis finds increased choice, decreased rates, federal policy impact

April 3, 2020

A red pencil, a calculator, and spreadsheets analyzing Michigan's 2020 Health Insurance Marketplace rates.The Health Insurance Marketplaces created under the Affordable Care Act (ACA) weathered several years of volatility and uncertainty at the federal level, but our rate analysis found that 2020, like 2019, was a year of stability in the Michigan Health Insurance Marketplace.

Following a tumultuous 2017 marked by Congressional “repeal and replace” debates, important administrative changes, and the termination of cost-sharing reduction payments to insurers, Michigan and other states experienced steep premium increases in 2018. 

In 2019, however, increases were far lower than they had been in recent years. And in 2020–at least in Michigan–many key marketplace indicator rates actually decreased while the number and range of Marketplace plan options increased for most Michigan counties.

In this report, we review these changes, describe how they impact residents across the state, and also describe what is known to date about the impact of federal ACA policy changes including repeal of the individual mandate tax penalty, continued funding cuts for local health insurance exchange navigators, extension of short-term plan options, and the introduction of Quality Star Ratings. 

Our key findings include:

  • The Marketplace in Michigan had nine issuers, the same nine as participated in 2019. All of Michigan’s 83 counties had at least two participating carriers.
  • During open enrollment, Michigan consumers could select from a variety of Marketplace plans, with nine to 76 plans offered in Michigan’s 83 counties. In 2019, consumers could select from between 12 and 57 plans.
  • Across all counties in Michigan, premiums decreased for the lowest cost silver plans by 3.8 percent on average, and for the second lowest cost silver plans by 4.2 percent.
  • Despite the increase in premiums of what are referred to as the lowest cost bronze plans, premiums for the cheapest available bronze plans decreased by 2 percent on average in 2020 compared to 2019.

To see our complete rate analysis of Michigan’s 2020 Health Insurance Marketplace, read the full brief.