Thousands of Michiganders May Face Medicaid Coverage Loss Due to New Requirements
In a significant policy shift, between 171,000 and 355,000 residents of Michigan are anticipated to lose their Medicaid coverage following the implementation of new work requirements and more frequent eligibility checks. These changes are part of the Trump Administration’s One Big Beautiful Bill Act.
This projection comes from a study by the Urban Institute, a research organization in Washington, D.C.
Medicaid, a public health insurance initiative, supports low-income individuals and families, as well as those with disabilities, with funding from both federal and state governments.
Set to be enforced in 2027, the new regulations require Medicaid applicants to demonstrate they have engaged in work or approved activities for at least 80 hours each month. Additionally, eligibility reassessments will occur biannually rather than annually.
According to Matthew Buettgens, a senior fellow at the Urban Institute, disenrollment often happens during these redetermination processes. Many who meet the work requirements might still lose coverage due to challenges in navigating the administrative procedures needed to report their activities or exemptions. Self-employed individuals, in particular, may struggle with income verification.
The Urban Institute highlights that people who are self-employed, those with health conditions, and individuals aged between 50 and 64 are most at risk of losing their coverage. The loss of Medicaid can lead to deteriorating health, financial strain, employment challenges, and delayed access to necessary care.
“The benefits of having coverage are pretty broad across a number of different areas of life,” Buettgens noted. “So, interruptions in that coverage could disrupt both health and financial security.”
The report projects that by 2028, there could be a reduction of between 4.9 and 10.1 million people in Medicaid expansion enrollment nationwide. The extent of these reductions depends on how each state handles the implementation. States with high mitigation strategies may automatically match data to assess eligibility, while those with low mitigation require individuals to provide documentation, likely increasing coverage losses.
Buettgens suggests that states can reduce the impact of these changes by adopting flexible exemption criteria for work requirements and minimizing the paperwork that applicants must submit.
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