A coalition of health care industry and government policy groups is trying to come up with a plan to ease the impact of federal Medicaid spending cuts.
Last week, President Donald Trump signed legislation into law slashing a trillion dollars in federal funding for state Medicaid programs over the next decade.
There are concerns as the funding cuts start taking effect in 2027, thousands of Michiganders will lose their Medicaid coverage and financially struggling rural hospitals may be forced to close.
Brian Peters is the CEO of the Michigan Health and Hospital Association. He said for now it’s about finding ways to keep rural hospitals open and people receiving care.
“Let’s add new policies, new funding that could help to support the folks who are trying to create access in our communities throughout the state,” said Peters.
Peters acknowledges coming up with new policies and funding presents issues, even within the coalition. He said Michigan hospitals alone are expected to lose roughly six billion dollars in Medicaid reimbursements over the next decade.
For now, advocates encourage Michiganders who qualify for Medicaid to apply. They point out that key provisions of the so-called Big Beautiful Bill signed by President Trump do not take effect until 2027.
But they also admit the spending cuts are having an effect now.
The advocates say hospital administrators are making decisions on future capital expenditures and staffing levels. State officials are making decisions now about how to implement the work requirements in the law.
“We do believe there are ways to implement some of the policies in here with minimal disruption for people who have covered services,” said Elizabeth Hertel, the director of the Michigan Department of Health and Human Services.
Many current Medicaid recipients are worried about how the new law will affect them and their families.
45 year old Jennifer Middlin said she had a full-time job. Four months ago, she suffered a traumatic brain injury in what she describes as a “violent auto accident.” Middlin lost her job and her health care coverage. Now, the Ingham County mother of three is on Medicaid.
“To say that there’s no harm right now, I think is a little bit of a misnomer, “ said Middlin. “I don’t sleep. I don’t know what’s next for me, I can’t plan my future right now.”
