"The right to criticize government is also an obligation to know what you are talking about."

-Lent Upson, first director of Citizens Research Council

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September 16, 2025

Upcoming Changes to Affordable Care Act (ACA) Tax Credits Will Also Disrupt Michigan's Health Care System

In July, major federal legislation known as the “One Big Beautiful Bill Act” (OBBBA) was enacted to extend significant portions of the 2017 Tax Cuts and Jobs Act. Congress paired these tax cuts with reductions in other federal spending to allow the bill to be passed without the possibility of a filibuster. A major source of these reductions came in the form of changes to Medicaid, which the Research Council covered in detail.

As we outlined, the cuts to Medicaid spending will have a large impact on Michigan for individuals who currently receive health care coverage through Medicaid, the health care system at large, and the state budget. However, Medicaid is not the only aspect of health insurance impacted by recent federal action (and inaction). Changes to the Affordable Care Act’s (ACA) private marketplaces are also likely to lead to fewer people with health insurance and higher premiums for those covered by insurance.

IN A NUTSHELL

-- Recent federal action and inaction are likely to lead to higher out-of-pocket premiums for people who obtain health insurance through the private Affordable Care Act marketplaces.

-- Higher premiums on policies available in the marketplaces are likely to result in people opting out of obtaining coverage, which will not only impact those individuals but will also likely have negative consequences for those who have private health insurance, the health care system, and the state.

-- Michigan has limited options to respond to the federal changes, especially given the tight budget environment, but should be evaluating what can be done to limit the potential impact.

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Early Results Are Disappointing in State's Efforts to Improve Literacy for Low-Income Kids

Guy speaks with Senior Research Director Craig Thiel about his recent issue brief examining Michigan’s efforts to enhance early literacy among low-income students, including increased funding and accountability measures. Unfortunately, while the data is still relatively new, the state’s efforts are not yielding the hoped-for results.

Michigan student test scores in several other grades and subjects have shown important (albeit gradual) improvements since the COVID-19 pandemic, the reading proficiency rates for third- and fourth-grade students continue to decline. A new analysis of third-grade reading results for at-risk students shows that fewer than half of all Michigan school districts have demonstrated improvement in “at-risk” student reading proficiency rates since the end of the COVID-19 pandemic. These district-level improvements, however, varied based on a district’s socioeconomic status.

“We found that 50 percent of high-poverty districts saw improvement in third-grade reading proficiency rates among ‘at-risk’ students, compared to just 37 percent of low-poverty districts,” Thiel said