LANSING — Michigan House Republicans are proposing billions of dollars in cuts to healthcare funding, some of the most drastic reductions in their annual budget proposal.
Hospitals say that the $3.7 billion in proposed cuts could further strain a system that is already close to cracking.
“As of March, we had 20 rural hospitals in Michigan under financial distress or severe financial distress — that number is only going to grow if this budget gets passed into law like this,” said Adam Carlson, senior vice president of advocacy with the Michigan Health and Hospital Association. “This state budget would really decimate health care in our state.”
Under the GOP’s proposal, the Michigan Department of Health and Human Services would lose 13% of the more than $25 billion currently provided for Medicaid and behavioral health.
“It includes billions of dollars in cuts that impact things like maternal health care payments to physicians and all sorts of other healthcare related cuts that are completely unnecessary,” Carlson said.
Gabe Schneider, director of government relations for Munson Healthcare, says that the proposed cuts would impact more than just Medicaid recipients.
“The funding that goes along with those Medicaid patients doesn’t just go to care for Medicaid patients — it goes to care for all of our patients,” he said. “So when we see the changes being proposed at the state and the federal level, really what we’re concerned about is access to care for all of our patients”
House Republicans have also proposed moving up the start of Medicaid work requirements from January 2027 to the beginning of 2026.
Republican House Speaker Matt Hall says that the policies would help reduce the amount that the state spends on Medicaid.
“Another way we can start rooting out the waste, fraud and abuse, is by implementing those work requirements sooner,” Hall, (R) District 42, Richland Twp., said last week. “If we do these things, we can preserve our Medicaid system for the people that truly need it, and ensure that it’s around for a long time.”
Michigan Democrats argue that the proposed cuts and work requirements would make it more difficult for eligible patients to receive the care they need.
“When you don’t have primary care on the front end, you end up costing taxpayers down the road because different things that could have been addressed up front — say, diabetes, for example — can cascade out of control,” said Rep. Julie Rogers, (D) District 41, Kalamazoo.
Healthcare experts also argue that investments in preventative care early on can help avoid more costly health outcomes in the long term.
“People are going to wait longer until they can get health care services, which means they’re going to show up sicker, and it’s going to cost everyone more,” Carlson said.
The Hospital Association also estimates that the federal budget bill will short Michigan hospitals more than $6 billion over the next decade, further adding to strains on the system.