Gov. Rick Snyder is moving toward establishing a partnership between Michigan and the federal government to provide an online market where people without health insurance can shop for private coverage.
Under President Barack Obama's health care plan, each state must decide whether to operate its own program, let the federal government do it for them or form a partnership.
Snyder has said he prefers a state-based system.
The state Senate has approved that idea. But the House has delayed action because its Republican majority opposes the Obama approach to health care.
In a statement Friday, Snyder's office said he has applied for a grant that would be a first step toward creating the partnership.
A spokeswoman said he's continuing talks with legislators about a possible state market program.