Senate Passes Another Piece of Hertel’s Agenda to Lower Healthcare Costs

Legislation would allow small businesses to create association health plans, lowering insurance costs for them and their employees

Lansing, MI – Today, the Michigan Senate passed another critical component of Sen. Kevin Hertel’s (D-St. Clair Shores) Healthcare You Can Afford Agenda, which would allow for the creation of association health plans for small businesses, helping reduce insurance costs for business owners and their employees while expanding access to quality coverage.

“No matter the size of their employer, every working person should have access to affordable, high-quality healthcare,” said Sen. Hertel. “But as the cost of running a small business continues to rise, many are struggling to offer the benefits their employees deserve. That’s where association health plans can make a real difference. This legislation will allow small businesses to band together and leverage their collective purchasing power to secure better coverage at lower costs – making healthcare more affordable for them and their workers.”

Small businesses are the backbone of the state’s economy, yet when it comes to providing affordable health insurance for their employees, they often face significant challenges. For four decades, the cost of health insurance has remained the number one concern for small businesses – and in a recent survey conducted by the Small Business Association of Michigan, nearly 42% of respondents said they’re less than three years away from not being able to offer health insurance at all if increases continue.

“Since day one of our Senate Democratic Majority, we’ve worked hard to give Michigan workers and small businesses the support they need and deserve,” said Senate Majority Leader Winnie Brinks (D-Grand Rapids). “By allowing small businesses to create association health plans, we’re improving access to affordable healthcare and lowering costs for employers – ensuring Michigan is the best place to start a business and find a good job with competitive benefits.”

Unlike larger corporations, small businesses often lack the leverage needed to negotiate lower insurance costs and frequently face higher administrative expenses. However, under Senate Bill 1011, these businesses would have the ability to band together, pool resources, and put together insurance options that reduce costs for themselves and their staff.

“We hear from small businesses across Michigan that rising health care costs are putting pressure on every part of their business, from hiring and wages to whether they can even continue offering coverage,” said Small Business Association of Michigan President & CEO Brian Calley. “Association Health Plans give them a practical way to come together, increase their buying power, and expand more affordable options for their teams so they can keep offering benefits and stay competitive.”

This legislation now heads to the Michigan House for their consideration. To learn more about Senate Democrats’ Health Care You Can Afford agenda, click here.

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