LANSING, MI – Governor Gretchen Whitmer has signed an executive directive requiring the Michigan Department of Health and Human Services (MDHHS) to assess the potential impact of proposed federal Medicaid cuts on the state’s 2.6 million Medicaid enrollees. This action comes in response to a Republican-led proposal in Congress that would slash Medicaid funding by $880 billion—marking what would be the largest cut to the program in its 60-year history.
“Medicaid provides a lifeline to millions of Michiganders—whether it’s an annual check-up or chemotherapy,” said Governor Whitmer. “If these cuts go into effect, as many as 750,000 people could lose health coverage. In Michigan, we believe getting sick should not mean going broke. That is why we are taking action now.”
The directive tasks MDHHS with producing a comprehensive report within 30 days detailing how the proposed federal cuts would:
- Affect the number of Michiganders who would lose coverage
- Impact hospitals—particularly in rural and underserved areas
- Increase health care deserts and reduce access to timely care
- Strain the state budget, potentially forcing cuts to other essential services
Read the full press release from the Governor’s Office: Governor Whitmer Signs Executive Directive to Identify Medicaid Cut Impacts.
State and Federal Leaders Respond
Lieutenant Governor Garlin Gilchrist II reinforced the urgency of the situation, warning that the proposed cuts could force families to travel further and pay more for basic care. “We are standing up to ensure every Michigander can see a doctor without fear of financial ruin,” Gilchrist said.
U.S. Representative Debbie Dingell added, “Medicaid is already a lean program. These cuts would leave more people uninsured and underinsured. I commend Governor Whitmer’s leadership in fighting back.”
Other lawmakers echoed this concern:
- Rep. Rashida Tlaib: “From Detroit to Dearborn, families fear losing vital services. We cannot allow partisan cruelty to dictate who gets care.”
- Rep. Shri Thanedar: “Over 333,000 people in my district depend on Medicaid. These cuts would devastate working families.”
- Rep. Hillary Scholten: “This report is essential. The stakes for our communities could not be higher.”
- Rep. Haley Stevens: “Slashing Medicaid to give tax breaks to billionaires is unconscionable.”
Economic Ripple Effects
According to data provided in the directive and subsequent statements, Medicaid contributes significantly to Michigan’s economy:
- $77 billion in total annual health care impact statewide
- 30,000+ jobs created due to Medicaid expansion
- $150 million in annual tax revenue
- Medicaid cuts could cost Michigan hospitals $500 million annually, leading to facility closures and reduced services, particularly in rural regions
“Hospitals are the backbone of our communities,” said Laura Appel of the Michigan Health & Hospital Association. “Reducing Medicaid financing threatens care for everyone—not just Medicaid patients.”
Local and Regional Impacts
From the Upper Peninsula to Northern Michigan, health care leaders are warning of grave consequences. Julie Shaw, Executive Director of the Superior Alliance for Independent Living, noted, “Nearly 300,000 disabled Michiganders rely on Medicaid. These cuts jeopardize lives.”
Ed Ness, President and CEO of Munson Healthcare, highlighted that 61% of births at Cadillac Hospital are covered by Medicaid. “Without adequate funding, our ability to serve families will be severely compromised,” he said.
Building on a Record of Health Access
Since taking office, the Whitmer-Gilchrist administration has taken significant steps to strengthen Michigan’s health care system:
- Extended the Healthy Michigan Plan to more than 1 million people
- Codified the Affordable Care Act into state law
- Increased Medicaid reimbursement rates to expand mental health services
- Expanded telehealth, dental care, and programs like RxKids and Healthy Moms, Healthy Babies
- Worked to reduce medical debt for nearly 700,000 Michiganders
“Michigan families will lose their health care under these proposed Medicaid cuts,” said MDHHS Director Elizabeth Hertel. “We are committed to protecting their access to care.”
Originally published via a press release issued April 16, 2024. Access the full Executive Directive here: Executive Directive 2024-3.
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