Insurance: reinsurance; innovative waiver for a reinsurance program; provide for. Amends 1956 PA 218 (MCL 500.100 - 500.8302) by adding sec. 3406nn. TIE BAR WITH: SB 0973’26
Key claim: Michigan SB0977 proposes adding a new section to the Insurance Code to allow an innovative waiver for a reinsurance program, tied to SB0973.
Abstract
(SB0977 · 103rd Legislature) Insurance: reinsurance; innovative waiver for a reinsurance program; provide for. Amends 1956 PA 218 (MCL 500.100 - 500.8302) by adding sec. 3406nn. TIE BAR WITH: SB 0973’26 Latest action (2026-06-18): Referred To Committee On Insurance
Why this matters
A state reinsurance program funded through an innovative (ACA §1332-style) waiver typically lowers individual-market premiums by reimbursing insurers for high-cost claims, which can expand affordability for unsubsidized enrollees while redirecting federal pass-through savings to the state. As part of the SB0973-tied exchange package, this bill signals Michigan is assembling the financial scaffolding — not just governance — for a state-based marketplace, with implications for who gains coverage and how insurers price plans.