Private Health Insurance in Michigan
Private health insurance in Michigan is coverage you buy directly, outside the ACA Marketplace, priced on your age, zip code and health instead of your income. With Michigan Marketplace premiums rising 14.5% on average for 2027, more people who earn too much for a tax credit are pricing a private plan first. It is not the right fit for everyone, and the sections below explain how it works in Michigan and when the Marketplace is the better call.
Who buys their own coverage in Michigan
Michigan's 2026 open enrollment produced 497,064 plan selections, about 34,000 fewer than the 531,083 for 2025, a dip of roughly 6 percent. New customers fell by about a third, from 97,493 to 64,637. Around 81 percent of 2026 enrollees had an advance premium tax credit, so close to 19 percent paid the full premium, more than double the share of about 9 percent a year before, once the enhanced credits ended. In Census data, about 36 percent of Michigan households have incomes of $100,000 or more.
How Michigan regulates private plans
Michigan policy forms must be filed with the Department of Insurance and Financial Services, count as approved if the director does not act within 30 days, and consumer forms must reach a readability score of at least 45 (MCL 500.2236). Public Act 54 of 2026, in effect since July 23, 2026, removes fixed indemnity and other excepted-benefit policies from the code's definition of a health insurance policy (MCL 500.608). Sharing ministries that meet MCL 550.1867, whose conditions include monthly statements of shared needs, are outside insurance law (MCL 550.1865), so DIFS sends complaints about them to the Attorney General.
Protecting yourself when you buy in Michigan
Every individual disability policy in Michigan, a category that includes health coverage, must print a front-page notice giving you 10 days after receipt to cancel for a full refund, fees included. After that window you can still cancel in writing and get back the unused premium on a pro rata basis (MCL 500.3409). In the DIFS Locator, choose Resident Producer to confirm an agent's license and see which insurers appointed the agent. DIFS takes questions and complaints at 877-999-6442. It has warned that callers pushing fake health policies are often after bank, card or medical details.
The Michigan Marketplace you would be comparing against
Michigan residents buy individual coverage on HealthCare.gov, and open enrollment for 2027 runs November 1, 2026 to January 15, 2027, with special enrollment available after losing other coverage, moving, marrying or having a baby. Michigan has no state premium subsidy or reinsurance program, so financial help comes from the federal premium tax credit based on your projected income. The biggest gap for Michigan tradespeople is continuation: the state has no mini-COBRA law, so anyone leaving a shop with fewer than 20 employees should plan on a Marketplace plan or another option within the 60-day special enrollment window. Michigan also keeps a tight rein on short-term plans, which are capped at 185 days in any 365-day period and cannot be stretched with renewals. Federal changes for 2027 expand access to catastrophic plans for people who do not qualify for tax credits and end the requirement that insurers offer standardized plans on HealthCare.gov.
Other Michigan rules to know
- Leaving a small employer: Michigan has no state continuation law for small employer plans, so people leaving an employer with fewer than 20 workers generally lose group coverage when the job ends, while federal COBRA still applies at larger employers.
- Short-term plans: Michigan limits short-term plans to 185 days in any 365-day period, with no renewals or extensions past that, regardless of the federal enforcement pause.
- Where to enroll: Michigan uses HealthCare.gov. Open enrollment for 2027 coverage runs November 1, 2026 to January 15, 2027. Private, medically underwritten plans can start the first of any month if approved.
- 2027 rates: individual plans 14.5% on average, small-group plans about 10%. See the Michigan 2027 rate page.
Why people leave the Marketplace for a private plan
Marketplace premiums are rising again for 2027, and above 400 percent of the poverty level ($63,840 for one person, $132,000 for a family of four) there is no tax credit at all. Underestimate your income and you repay the credit in April. Many Marketplace plans are local HMOs or EPOs, out-of-pocket maximums reach $12,000 per person in 2027, and you can only enroll once a year without a qualifying event.
What a private plan does differently
A private, medically underwritten plan is priced on health, not income, so a strong year never raises the premium and there is nothing to pay back at tax time. If approved, it can start the first of any month, and many plans use national PPO networks that work when you travel.
The honest trade-offs
You apply and answer health questions, and approval is not guaranteed. Underwritten plans can decline an application or exclude a pre-existing condition, and benefits and limits differ from plan to plan. Private plans are not ACA Marketplace plans. If you have a significant health condition, the Marketplace is the guaranteed option, and I will tell you so.
For 2027 the Marketplace credit stops at 400 percent of the poverty level: $63,840 for one person, $86,560 for two and $132,000 for a family of four. The out-of-pocket maximum for 2027 Marketplace plans is $12,000 for one person and $24,000 for a family. The full guide covers the rest.
Compare Michigan plans
Licensed in Michigan. Private plans priced first, Marketplace alongside when it fits. No fee.
Michigan questions
Where do Michigan residents enroll in 2027 coverage?
Michigan uses HealthCare.gov. Open enrollment for 2027 coverage runs November 1, 2026 to January 15, 2027.
What continuation rights does Michigan give after leaving a small employer?
Michigan has no state continuation law for small employer plans, so people leaving an employer with fewer than 20 workers generally lose group coverage when the job ends, while federal COBRA still applies at larger employers.
How much are Michigan premiums rising for 2027?
Individual-market premiums are set to rise 14.5% on average, and small-group plans about 10%.
What is private health insurance?
Coverage you buy directly from an insurer outside the ACA Marketplace. Medically underwritten private plans are priced on age, zip code and health rather than income, and they can start the first of any month if you are approved.
Is private health insurance cheaper than the Marketplace?
Often for healthy people above the subsidy line, who pay full price on the Marketplace. Below the line, a Marketplace plan with a tax credit may be cheaper. The only way to know is to price both.
Can a private plan turn me down?
Yes. Underwritten plans can decline an application or exclude a pre-existing condition. The Marketplace has to accept everyone during open enrollment or a special enrollment period.
Sources: www.cms.gov, www.legislature.mi.gov, www.legislature.mi.gov, legislature.mi.gov, www.michigan.gov. Facts checked October 2026. See all Michigan health insurance rules.
Private plans in other states
Written by Frank Caballero, licensed health insurance agent in Michigan and 30 other states, NPN 21032307.