Status of Michigan Medicaid Funding Topic of Senate Subcommittee

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Status of Michigan Medicaid Funding Topic of Senate Subcommittee

The Michigan Legislature is currently reviewing the Governor’s proposed Fiscal Year 2026 budget of which Michigan’s Medicaid budget comprises approximately 34 percent of the state’s overall budget. Given that over 70 percent of Michigan’s Medicaid budget is funded with federal dollars, actions by the U.S. Senate and House to seek significant reductions in the federal budget through committees with oversight over Medicare and Medicaid appropriations are concerning.

To help determine the impact on Michigan residents should several billion dollars’ worth of federal funding be reduced, the Michigan Senate Appropriations Subcommittee on Department of Health and Human Services invited testimony from the Michigan Department of Health and Human Services (MDHHS), the Michigan Primary Care Association (MPCA) which represents federally qualified health centers (FQHCs), and the Michigan Health & Hospital Association (MHA).

MDHHS shared background on Medicaid, income limits and eligibility, distribution of funding, and the fact that one in four Michiganders count on Medicaid. The MPCA and MHA followed with examples of the real time impact on patients and communities and the health care professionals, FQHCs, and hospitals who serve them. Click here to watch a recording of the testimony.

The Michigan State Medical Society (MSMS) is engaged in a number of activities to raise awareness about the negative consequences should any or all of the detrimental funding cuts and/or policy changes being discussed at the federal level be adopted. To date, we are participating with a number of Michigan partners through the Protect Michigan Medicaid Coalition (PMMC).  In addition to our own grassroots advocacy, MSMS is a co-signer on joint letters from the PMMC, State Medical Association CEOs, and Michigan’s Medical Care Advisory Council.

MSMS Engage to Protect Medicaid - Reach out to your legislators today and demand that they protect Medicaid funding! 

If Congress passes significant budget cuts or program changes to Medicaid, the lives of millions of our country’s most vulnerable populations – children, pregnant women, seniors and low-income families – many who rely on Medicaid for essential care will be dramatically impacted. Medicaid provides not only health care but also economic security, especially in rural and underserved areas. 

Michigan Medicaid provides approximately 2.8 million people with health care coverage, including 1.1 million children and 168,000 seniors. Additionally, 45 percent of the births in Michigan are covered by Medicaid and one in ten veterans in the United States relies upon Medicaid.