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Republican lawmakers unsure about Granholm's insurance plan

Published February 2, 2006

LANSING (AP) - Some Republican lawmakers were skeptical yesterday as state officials discussed Democratic Gov. Jennifer Granholm's proposal to provide health insurance to more than a half-million low-income residents.

The plan would not increase state spending or taxes, state Department of Community Health Director Janet Olszewski said during a joint Senate committee hearing. It would cover uninsured people with incomes below 200 percent of the poverty line. That's $38,700 for a family of four and $19,140 for a single person.

Medicaid officials estimated that residents making near double the poverty line would probably pay a $50 premium. Others would be charged a lower premium on a sliding scale.

"Everyone will pay something, and people enrolled in the program are expected to increase their contribution as their incomes rise," Olszewski said. "Further, everyone ... is expected to take personal responsibility for health behaviors."

Republican members of the Senate Health Policy Committee and the Department of Community Health Appropriations Subcommittee, however, raised some concerns.

One worried that by insuring more people, the demand for health care would rise and raise costs on everyone else. Sen. Tom George (R-Portage) also said people should be nudged to quit smoking and be healthier if they want to get health coverage that's mainly funded by taxpayers.

State officials said they expect private insurers that would partner with the state to encourage health behaviors, but added that details need to be worked out.

Other lawmakers wondered what level of health coverage could actually be provided to uninsured residents.