How MDHS says proposed Medicaid cuts could affect Michigan
GRAND RAPIDS, Mich. (WOOD) — Analysts with the state health department are raising the alarm about how proposed cuts to Medicaid would impact healthy systems and health outcomes across the state.
Recently, Republicans in Congress announced a plan to cut $880 billion from Medicaid. If passed, it would be the largest cut to Medicaid in its 60-year history.
The Michigan Department of Health and Human Services released a report this week on the impact of these cuts. According to their report, a reduced federal matching rate would result in just over a billion dollar annual loss to the state budget.
New Medicaid work requirements would see a loss of coverage for up to 290,000 Michiganders in the first year. Tax reforms for providers would yield a $2.3 billion payment decrease to state hospitals.
But the department's director warned, these cuts won't just impact people on Medicaid.
'It's crucial to remember that people covered by Medicaid health plans are served in underserved areas,' said Director Elizabeth Hertel in a statement to News 8's Detroit affiliate. 'If those facilities or hospitals have to close, it's not only those covered by Medicaid who will lose access; everyone in that region will be affected.'
As it stands now, Michigan has approximately 2.6 million Medicaid enrollees, representing 26% of the state's population. Michigan's Medicaid budget is approximately $27.8 billion for this fiscal year. Around 70% of that comes from federal funding.
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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