A new report from the Michigan Department of Health and Human Services estimates that more than 700,000 Michiganders could lose health care coverage under proposed federal Medicaid cuts.
The analysis, directed by Governor Gretchen Whitmer, indicates that Michigan hospitals would face a $2.3 billion reduction in payments, while nursing homes would see a decrease of $325 million in payments.
The potential Medicaid cuts are raising concerns among healthcare providers.
Honor Community Health recently purchased property for a planned teaching health center in Pontiac, but cuts to Medicaid could jeopardize those expansion plans.
“The bottom line for us would be a 30% cut to the revenue we generate, which means we would not be able to serve the patients living in communities like ours, in Pontiac, Waterford, and neighboring areas,” said Dr. Nikhil Hemady, Chief Medical Officer at Honor Community Health.
Michigan has approximately 2.6 million Medicaid enrollees, representing 26% of the state’s population.
Medicaid coverage varies significantly across counties:
- Wayne County: 40% of residents
- Macomb County: 26% of residents
- Oakland County: 16% of residents
- Washtenaw County: 16% of residents
Most patients at Honor Community Health’s Oakland County centers are Medicaid beneficiaries.
“60% of the individuals we care for are on Medicaid,” Dr. Hemady stated. “They are unlikely to come in for their routine health visits and will seek care later in their disease progression.”
MDHHS Director Elizabeth Hertel emphasized that the cuts would affect all residents, not just Medicaid beneficiaries.
“It’s crucial to remember that people covered by Medicaid health plans are served in underserved areas. If those facilities or hospitals have to close, it’s not only those covered by Medicaid who will lose access; everyone in that region will be affected,” Hertel warned.
Hertel noted that the state would not be able to fill the funding gaps if Medicaid were reduced.
“Should we see some of these drastic reductions, the state legislature and the governor would have to make very difficult decisions regarding who is covered by Medicaid, what the benefits look like, or how much we are paying providers,” she said.
Democrats and some Republicans have expressed opposition to cutting Medicaid funding.
