Michigan Medicaid Faces Cuts Amid Federal Budget Reduction Talks

As budget negotiations continue in Washington, a substantial portion of Michigan’s Medicaid users could see their health coverage threatened. This comes amid efforts by Republicans to meet ambitious budget reduction targets, which experts warn may be unachievable without impacting Medicaid.

The Michigan Department of Health and Human Services has highlighted that almost a third of Medicaid recipients in the state may be affected if the proposed cuts, amounting to $880 billion, proceed as part of federal spending reductions. Although Republicans assert that Medicaid will remain untouched, achieving the budgetary goals without affecting the program is seen as highly unlikely.

Governor Gretchen Whitmer requested the report as part of her strategy to counteract the proposed cuts, which she claims could result in a $1.1 billion annual loss for the state. The report further predicts a $2.2 billion reduction for Michigan hospitals and a $325 million shortfall for nursing homes.

“More than 700,000 Michiganders including people fighting cancer, seniors in nursing homes, new moms, veterans, kids, and those living with disabilities could lose their health care,” Whitmer stated. “Michiganders will suffer because these proposed cuts go too far, too fast, and everyone, including those not on Medicaid, will end up paying more for their insurance.”

However, state Sen. Jim Runested (R-White Lake), who also chairs the Michigan Republican Party, dismissed Whitmer’s claims as “scaremongering,” pointing out that a detailed budget proposal has yet to be released. He suggests that savings could be achieved by eliminating ineligible individuals from assistance programs, curbing improper payments, and deporting non-citizens.

“Nobody losing their benefits who should have them. It’s people who don’t – a lot of them are illegal aliens,” Runested remarked, despite the fact that individuals without legal status are not eligible for federally funded Medicaid. He emphasized that reducing Medicaid expenses is a component of President Donald Trump’s strategy to combat “waste, fraud and abuse.”