Michigan Senate rejects partnering on health exchange

The federal government will fully control an online marketplace where Michigan residents can buy health insurance required under the federal health care law.

The Republican-led state Senate adjourned Thursday without voting on a bill calling for Michigan to have a role in the health exchange. GOP Gov. Rick Snyder says it was the last day to act.

Snyder wanted to partner with the federal government by spending a $31 million federal grant to set up the website. Now the state must spend $8 million of its own money to link computer systems to the federal exchange.

That's because the exchange will be used to determine people's eligibility for Medicaid and whether they qualify for income-based federal aid to help pay their premiums.