Legislative Update: Budget Momentum and Health Policy Activity

Legislative Update with the Lansing Capitol

Attention in Lansing is squarely focused on the state budget, where early proposals are beginning to take shape and each Chamber is setting its respective priorities. Lawmakers are moving from broad positioning to detailed negotiations, with decisions in the coming weeks expected to have direct implications for health care funding, Medicaid, and physician practice environments across Michigan.

State Budget - House Passes Plan, Senate Action Pending

Michigan House Republicans approved a $75.8 billion state budget after extended negotiations, positioning it as a fiscally restrained starting point with reductions in overall and General Fund spending. Although the total House Budget reaches roughly $84.8 billion, it is still below the governor’s total proposal of $88 billion.

The budget now heads to the Senate, where negotiations will intensify around Medicaid funding, education policy, and long-term fiscal priorities.

Meanwhile, the Senate Democrats are outlining their budget plan, which includes a proposed $350 million withdrawal from the state’s Rainy Day Fund to help address Medicaid caseload growth and potential impacts from recent federal policy changes. Senate Appropriations Chair Sarah Anthony indicated the plan is intended to use a portion of reserves while maintaining a balance of remaining funds, estimated at about $1.8 billion.

Unlike the proposal from Governor Whitmer, the Senate plan does not incorporate new revenue from taxes on products such as vaping or internet gaming. Instead, the caucus has emphasized reviewing existing spending and identifying efficiencies as part of its initial framework.

This approach differs from the House-passed budget, which includes additional allocations for legislatively directed projects and transfers into reserve accounts. The Senate is expected to move its full budget proposal to the floor shortly, providing further detail as negotiations continue.

House Health Policy Committee - PBM Reform and Emergency Protections

The committee reviewed HB 5303 (Rep. Alabas Farhat-Dearborn), which would require Medicaid managed care plans to adopt clearer reimbursement standards for certain independent pharmacies. The bill responds to pricing inconsistencies following 2023 reforms, including cases of significantly inflated charges for common over-the-counter products. Testimony emphasized the need for standardized benchmarks and reduced administrative burden.

Committee members also discussed oversight gaps and whether reforms should extend beyond smaller pharmacies. Chair VanderWall indicated that further work on the language was needed and no vote was taken.

Additionally, the Committee heard testimony on SB 590 and SB 591, which would expand liability protections for individuals providing emergency assistance, such as bleeding control, at accident scenes. A vote is expected in the coming weeks. 

Upcoming Events

Getting involved in state politics is easier than it might seem. Legislators regularly host free events locally for constituents to share their thoughts and opinions. Look for an event in your area below:

MONDAY, APRIL 27

  • Representative Betsy Coffia (D) Local Office Hours 6:00 p.m. to 7:00 p.m.

    Suttons Bay Bingham District Library 416 Front Street, PO Box 340 Suttons Bay, MI 49682

  • Senator Sam Singh (D) Local Coffee Hours 6:00pm to 7:00pm

    St. Johns Briggs District Library: 108 E Railroad St. St. Johns, MI 48879

MONDAY, MAY 4

  • Representative Regina Weiss (D) Local Coffee Hour 5:30 to 6:30 p.m.

    Oak Park Public Library 14200 Oak Park Blvd Oak Park, MI48237 

MONDAY, MAY 11

  • Representative Betsy Coffia (D) Local Office Hours 12:00 p.m. to 1:00 p.m.

    Leelanau County Government Center (8527 E Government Center Dr, Suttons Bay).

WEDNESDAY, MAY 13

  • Representative Mike Mueller (R) Coffee Hour 10:30 a.m. to 12:00 p.m.

    Mundy Township Senior and Enrichment Center, 3478 Mundy Ave., Swartz Creek. 

MONDAY, MAY 20

  • Representative Nancy DeBoer (R) Local Office Hours 9:00 a.m. to 10:00 a.m.

    1190 S. Washington Ave. Holland MI

For questions, please contact Kate Dorsey, MSMS Director of Government Affairs, at kdorsey@msms.org or 517-336-5737.