House panel rejects MI health exchange

LANSING, Mich. (AP) - A Michigan House panel has rejected a proposal to create a state-run online market where people can compare and buy health insurance plans.

The House Health Policy Committee defeated the health exchange legislation Thursday by a 9-5 vote, and two members abstained. The state Senate approved a bill but the House delayed action because its Republican majority had opposed President Barack Obama's federal health care act.

With Obama's re-election, GOP leaders have acknowledged the president's health care plan will move forward and a decision must be made about the insurance exchanges that are part of the plan.

Gov. Rick Snyder prefers a state-run program but his administration applied for a federal grant as a first step toward the fallback position of teaming with the federal department.