The proposed bill establishes a state-based health insurance exchange in Michigan, organized as a nonprofit corporation, to create a competitive marketplace for health insurance. It outlines the formation of a governing board with 12 members, including representatives from health insurance providers and consumer advocates, responsible for overseeing operations and ensuring compliance with laws. The bill also mandates the appointment of an independent executive director to manage the exchange and prohibits the formation of entities with names similar to the exchange, ensuring clear identification of the state health insurance marketplace.

Furthermore, the bill details the operational and financial requirements for the exchange, including the establishment of an audit committee and the creation of an exchange fund. It requires the exchange to make qualified health plans available online and via a toll-free hotline by January 1, 2028, and to implement enhanced direct enrollment and automatic re-enrollment for health insurance carriers. The director of the exchange is granted authority to promulgate necessary rules for implementation, and the act will only take effect if another related bill is enacted into law.