Capitol News

LANSING — Three insurance companies will exit Michigan’s individual Affordable Care Act (ACA) marketplace in 2026, with a fourth ending coverage for Metro Detroit, according to the Detroit Free Press. The departures are expected to impact more than 200,000 residents across the state.

The insurers leaving the market are HAP CareSource, Molina, and Physician Health Plan (also known as University of Michigan Health Plan). Meridian will discontinue plans for Metro Detroiters but continue coverage elsewhere. These changes coincide with the expiration of expanded ACA subsidies that have helped make individual health plans more affordable for many Michiganders.

State regulators have approved an average premium increase of 20% for individual health plans in 2026. Without an extension of the extra subsidies, individuals earning above four times the federal poverty level—$62,600 for one person or $128,600 for a family of four—will pay full price for their premiums. For some enrollees, this could mean their costs double or triple compared to previous years.

A spokesperson from the Michigan Democratic Party commented on the situation: “Mike Rogers is cheering on the health care crisis that’s crushing Michigan families while millionaires like himself get tax handouts at everyone else’s expense,” said Joey Hannum. “This is Mike Rogers’ and the GOP’s health care plan in action: spiking premiums, ripping away access to affordable health care, and punishing working people to reward the wealthy.”

Cortney Strother, a small business owner from Berkley who currently pays $289 per month after subsidies for his ACA plan, received notice that his insurer would no longer offer coverage next year. He stated: “I’ve been very happy with the Affordable Care Act options in this past,” Strother said, “but right now I am literally in limbo waiting to see what’s going to be available. If my bills go up into that region that is close to $1,000 a month, I have no idea what I’m going to do.”

Annika Vanderwerf from Houghton also expressed concern about rising costs once subsidies expire. She currently pays under $10 per month but found new options could cost her $380 monthly.

According to the Detroit Free Press, these developments may result in higher out-of-pocket expenses and fewer choices during open enrollment periods.

Premium increases will affect various demographics differently:

- A 45-year-old making $64K could see an average premium rise of $1,678.

- A couple aged 60 earning $85K might face an increase averaging $19,533.

- A family of four making $130K could experience a rise averaging $9,092.

These figures highlight how some middle- and upper-middle-income earners may be particularly affected by both insurer exits and subsidy expirations.