A followup to Andrew Sprung’s (xpostfactoid) piece on the impression to people. That is one report of many detailing what is going to occur in a single state, the state of Michigan. Multiply this many instances over to start to grasp why a Tax Break invoice failing to pay for itself (handed below Reconciliation) is just not so essential to have. It’s not so essential to have when it would trigger thousands and thousands of residents to lose their healthcare.
Like Charles Gaba, I lived in Michigan. Charles nonetheless lives in MIchigan and I don’t. I do have a agency understanding of what’s going to occur to MI residents shedding Medicaid protection. I’ve written on it a number of instances about healthcare. What Charles is presenting, are the main points what is going to occur in only one state.
Michigan: Republican Medicaid cuts would kick as much as 700K Michiganders off healthcare protection & pull $1.1B out of state economic system
– by Charles Gaba
Gov. Whitmer Releases High Strains of Alarming Report on Federal Medicaid Cuts, Discovering Cuts Would Terminate Well being Take care of 700,000 Michiganders
MDHHS report additionally exhibits federal cuts to Medicaid will improve prices for hospitals and small companies, and considerably pressure state funds
LANSING, Mich. — In the present day, Governor Gretchen Whitmer launched toplines of an alarming report from the Michigan Division of Well being and Human Providers (MDHHS) on the impression of federal proposals to chop Medicaid. In accordance with the brand new report, these proposed cuts would lead to a lack of well being care protection for a whole lot of hundreds of Michiganders, scale back entry to suppliers for all residents, improve monetary burdens on hospitals and small companies, and considerably pressure the state’s funds.
Governor Whitmer: “Medicaid provides a lifeline to 2.6 million Michiganders, and the huge, proposed cuts will terminate coverage for our neighbors, family, and friends who need it most. 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. 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. Republicans in Congress cannot let this happen. I am grateful to MDHHS for their report, and I look forward to continuing to work together to make sure that everyone gets the care they need.”
Lt. Governor Garlin Gilchrist II: “Today’s report is shocking and should alarm all Michiganders. Medicaid cuts could impact more than 700,000 Michiganders, including children, seniors, new moms, people with disabilities, veterans, and rural communities. Defunding Medicaid will make Michiganders pay more and travel farther to get care — that is unacceptable. The Republicans who claim to be public servants while also pushing for these cuts should be ashamed for putting politics over our people. We are calling on the Michigan Republicans to reject cuts to Medicaid and protect Michiganders’ access to health care, not terminate access. We’ll stand tall so every Michigander can go to a doctor when they’re sick without going broke.”
State Funds Director Jen Flood, “Medicaid cuts proposed by Congress would decimate our Medicaid program – blowing a $2 billion hole in our budget. We don’t have the resources to fill a hole of that size without cutting access to health care, or cutting public safety, education, or services to veterans.”
Medicaid Government Directive
The report was compiled in response to Government Directive 2025-3 from Gov. Gretchen Whitmer, which directed MDHHS to establish the potential impression Republican-proposed cuts to Medicaid would have on Michiganders’ well being.Republican-Proposed Cuts to Medicaid
Not too long ago, Republicans in Congress introduced a plan to chop $880 billion from Medicaid, to allow them to ship a $4 trillion tax minimize that may primarily profit the wealthy. If handed, this could be the most important minimize to Medicaid in its 60-year historical past. Nationwide, thousands and thousands would lose entry to well being care and the price of well being care will go up for each single American.An MDHHS assessment of the proposals discovered the next:
Lowering federal matching charges:
- Greater than 700,000 Michiganders, or roughly 30% of Medicaid beneficiaries, would lose well being care protection because of the $1.1 billion annual loss for Michigan’s funds.
Terminating well being care protection for Michiganders who’re too sick to work:
- The worth tag to manage the reporting necessities program will price taxpayers an extra $75 million to $155 million per 12 months.
Sidebar: That is really a really sensible (and correct!) manner of framing so-called “Work requirements.” Since the overwhelming majority of Medicaid enlargement enrollees already both work full-time or part-time, attend faculty or are caretakers for sick relations already. Which means that even when such a program labored completely, those that can be kicked off of Medicaid would fall into 2 classes: Those that are (satirically) too sick to work, these looking for work who haven’t been capable of, or the supposed “Young Men Playing Videogames All Day.” Federal Gov. Home Speaker Mike Johnson is satisfied they make up a good portion of the Medicaid enlargement inhabitants regardless of all proof on the contrary.
In actual fact, it’s the latter group who Johnson & the GOP are utilizing as all the pathetic justification for imposing work reporting necessities within the first place. It’s additionally essential to notice that they challenge it could price the state between $75 – $155 million per 12 months simply to manage this system.
If this sounds insanely excessive, right here’s a real-world instance: Georgia Pathways, the one present Medicaid program with lively work reporting necessities, spent over $26 million in administrative prices final 12 months. Pathways solely enrolled round 4,000 individuals in its first 12 months. That’s a price of $6,500 apiece simply to manage this system (whole enrollment is as much as round 7,000 as of March 2025; I’m unsure how way more the admin prices have racked up since then).
Supplier tax reforms:
- $2.3 billion lower in funds to Michigan hospitals and upwards of $325 million much less in funds to nursing properties within the state.
Change to per-capita/block grant funding:
- $4.1 billion to $13.4 billion loss over the following 10 years.
MDHHS Director Elizabeth Hertel: “These cuts will impact health care services for all Michigan families – whether they have Medicaid or commercial insurance – and small town and rural communities are likely to be disproportionally affected. Medicaid patients make up an average of 22% of hospital patient volume and the loss of funding under these proposals will cause rural hospital closures and loss of providers. Studies show a lack of access to health care can lead to higher mortality rates, worse health outcomes, increased health disparities and strain the state’s emergency care system.”
Medicaid serves a central position in Michigan’s well being care system, offering complete protection to greater than 2.6 million Michigan residents by over 200,000 Medicaid-enrolled suppliers. Collectively funded by the state and federal authorities, Michigan’s Fiscal 12 months 2025 Medicaid funds is roughly $27.8 billion. A majority of this funding – round 70%, or $19 billion – comes from the federal authorities.
Medicaid can also be one of the crucial cost-efficient types of protection, making certain these with the best want have entry to important providers, notably in underserved communities and rural areas. It has decrease whole and per capita prices than all different main well being packages, together with Medicare and personal medical health insurance.
Medicaid’s Position in Supporting Michigan’s Financial system
Medicaid performs a key position in supporting the well being of Michigan’s economic system. Michigan’s well being care business has a complete financial impression of $77 billion per 12 months: better than another business within the state. Medicaid enlargement alone sparked the creation of greater than 30,000 new jobs. These jobs increase the private spending energy for Michigan residents by about $2.3 billion annually and lead to roughly extra $150 million in tax income yearly.If Republicans succeed, Michigan hospitals may lose out on half a billion {dollars} in Medicaid funding yearly, and threatening hundreds of jobs. Because of this, hospitals in native and rural communities throughout Michigan will shut, which can threaten entry to care, elevating costs, and forcing individuals to drive additional for well being care. This might drive Michiganders out of our state, decreasing our inhabitants development and likewise crippling our economic system.
The impression on the state stage is severe additionally.
