The Overview

The separate dental or vision plan you pay for doesn't count as health insurance under Michigan's insurance code, and neither does a hospital indemnity policy or a Medicare supplement. On July 29, 2026, Gov. Gretchen Whitmer approved House Bill 4207, which took effect immediately as Public Act 53.

House Bill 4207, now Public Act 53, rewrites the definition of a "health benefit plan" in the part of the code that covers small-business group insurance. Its companion, House Bill 4208, now Public Act 54, does the same for "health insurance policy" across the whole code, according to the House Fiscal Agency's legislative analysis.

Both laws exclude coverage made up only of "excepted benefits," the federal term for limited or supplemental plans such as dental, vision, accident and long-term care insurance. The fiscal agency found the bills would cost state and local governments nothing.

The Demo

Michigan has about 10.1 million residents across roughly 4.1 million households, according to 2024 American Community Survey five-year figures. About 4.9 percent of Michigan residents, roughly one in 20, carry no health insurance. The state's median household income stands at $72,875, and 13.2 percent of residents fall below the poverty line. The Michigan House passed House Bill 4207 on April 23, 2025, by a vote of 106 to zero, with four members not voting.

The Debate

The Michigan Senate passed House Bill 4207 July 3, 2026, 36 to zero, with two members excused. The Michigan Senate passed the bill July 3, 2026, 36 to zero, with two members excused. Supporters characterized the measure as a technical update that codifies existing federal distinctions rather than a substantive policy change, according to the Citizen Portal, a Michigan legislative news outlet.

Industry groups have argued that applying state benefit mandates to products Congress has explicitly exempted from federal mandates creates an inconsistent and burdensome regulatory environment. Consumer advocates have argued that state oversight serves as a necessary backstop, given the limited federal protections for these products.

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