Deeper Dive: The State of Medicaid in Michigan
2.6 million people receive Medicaid benefits in Michigan
The House Concurrent Budget Resolution for 2025 was passed last month. While it contains sweeping cuts to many vital government services, arguably one of the most damaging are those proposed for Medicaid. The resolution directs the House Energy and Commerce Committee, which controls spending for Medicaid, to cut $880 billion from the federal deficit over the next 10 years. While this is not the only program under the committee’s control, it is suspected that the vast majority of this reduction will come from cuts to Medicaid.
What exactly is Medicaid? Medicaid was established by President Lyndon B. Johnson as part of the Social Security Amendments of 1965. The program was formed to provide healthcare services to low-income families and children. Over the years, Medicaid has expanded to provide coverage for individuals with disabilities and nursing home care, and services such as home health care, nursing facilities, prescription drugs, transportation for medical care and family planning programs. Currently, over 70 million Americans are enrolled in Medicaid and the program accounts for $1 of every $5 spent on healthcare in the United States.
Most states offer additional services via Medicaid. Michigan’s expanded Medicaid program offers benefits such as healthcare for people affected by the Flint water crisis, mental health and substance abuse disorder care services, and dental care for pregnant individuals and children under the age of 19.
The proposed cuts to Medicaid would have huge, wide-ranging effects. In Michigan alone, approximately 2.6 million people receive Medicaid benefits. Brian Peters, CEO of the Michigan Health and Hospitals Association, noted in an April 28 opinion piece in the Lansing State Journal that in 2024, 45% of babies born in Michigan relied on Medicaid for care. Medicaid also provides funding for approximately ⅔ of Michigan’s nursing home residents. But for the rest of Michiganders, it would be inaccurate to believe they won’t be affected by budget cuts if they aren’t enrolled.
Monique Stanton, president and CEO of the Michigan League for Public Policy, explains, “Proposals in Congress that would cut or cap Medicaid funding, including those outlined in the House Budget Resolution, would have catastrophic consequences for Michigan. In 2026 alone, our state could lose $2.2 billion in federal funding, experience a $4.9 billion drop in economic output, and see our state GDP fall by $2.9 billion. These cuts would trigger the closure of hospitals, birthing centers, behavioral health clinics, and nursing homes—particularly in rural and underserved communities—leaving entire regions without access to essential care.”
Beyond access to healthcare, Peters points out that Michigan’s Medicaid expansion alone supports over 10,000 jobs in the state. Those job losses cannot be afforded as Michigan’s unemployment rate has crept up to 5.5% over the last few months. With the potential of loss of access to healthcare, loss of jobs and loss of revenue, the devastation that could ripple throughout the state is incalculable.
Proponents of federal cuts to Medicaid say that work requirements are necessary to combat fraud and abuse and that Medicaid should be funded by the individual states. However, KFF, a leading nonprofit organization in the United States dedicated to providing unbiased research, polling, and news on health policy issues, found that nearly two-thirds of adults ages 19-64 covered by Medicaid were working and nearly three in ten were not working because of caregiving responsibilities, illness or disability, or due to school attendance. The number of Medicaid recipients who are able to work but are not currently working is small, and many of those face burdensome red tape and the potential loss of needed coverage if they do choose to work.
As far as relying on states to provide Medicaid funds on their own, there is no way for states to absorb those costs without substantial cuts to other programs. Despite Michigan spending less per capita than most states, $5,835 per enrollee in 2021, compared to a national average of $7,593, BridgeMI notes that the hole caused by proposed Medicaid cuts “could only be backfilled by moving general fund dollars from other services — public safety and education, for example.”
Michigan, however, is not giving up Medicaid without a fight. In response to the looming threats of deep cuts, a coalition called Protect MI Care has been formed, comprised of over 100 Michigan groups such as the Autism Alliance of Michigan, the Michigan chapter of the American Lung Association, Michigan Council for Maternal and Child Health, and the Michigan Assisted Living Association. Also participating are several Grand Rapids-area-based organizations including Disability Advocates of Kent County, First Steps Kent, Grand Rapids African American Health Institute, and Kent County Essential Needs Task Force. The full listing of coalition members shows that there is not an aspect of healthcare in Michigan that Medicaid cuts won’t touch.
Protect MI Care’s stated purpose is “to ensure that the voices of patients, caregivers, providers, and local communities are heard loud and clear in the fight to protect Medicaid.” While the group is new and continuing to grow, it is already providing educational information and a template for contacting your representatives to demand they protect Medicaid resources.
Last month, Governor Gretchen Whitmer signed an executive directive ordering the Michigan Department of Health and Human Services to identify the impact of federal Medicaid cuts on Michiganders. The results of this report, including items such as the number of Michiganders who would lose health care if the proposed cuts go into effect; the effect of the proposed cuts on hospitals, especially in rural and other underserved communities, including reductions in services and closures of facilities; the impact on timely access to care for Michiganders; and the ways in which reductions in federal money would impact the state’s budget, including the need for cuts to other vital services, is due later this month.
What you can do:
While Michigan’s politicians, nonprofits and healthcare providers are leading the fight against Medicaid cuts, the efforts of everyday Michiganders are also needed. Please consider getting involved by doing the following:
Write and call your representatives in Michigan and US congresses to demand they fight to protect Medicaid for Michiganders.
Have conversations with your friends and family about the impacts we all will face if cuts to Medicaid are passed.
Keep an eye on IGGR’s events calendar for opportunities to attend meetings, educational events and protests.
Please let us know if you find this deeper dive helpful by pressing the ❤️ button at the top or bottom of this email. You can also click on the thought-bubble icon 💬 and leave us a comment or question. Not only does the team at IGGR want your feedback but you help us make this communication better for all. Thank you for reading.
Sources:
https://protectmicare.org/
This is a very, sobering and unsettling report about the potential decrease in health services in our state. Currently, I practice as an np in three county jails in Northern Michigan, and also work one day a week at a harm reduction substance use disorder clinic in Cadillac, Michigan. All the patients I see at the SUD clinic are on Medicaid. And patients in the jail I call them patients as opposed to inmates because I’m seeing them for healthcare. Should they have Medicaid It is turned off when they are incarcerated meaning many other medications have to now be subsidized by the County Jail budget. Thank you for this in-depth report.
I'm still willing to help you with your online protest. I have been trying to reconnect with the person who contacted me originally. I have tried email too. Looking for a secure way to share my contact information with you.