State Rep. Mike McFall (D-Hazel Park) testifies in favor of HB 5695 in the House Committee on Local Government and Municipal Finance on November 13, 2024.

LANSING, Mich., Jan. 24, 2025 — State Rep. Mike McFall’s (D-Hazel Park) House Bill 5695 passed the House and Senate with bipartisan support and was recently signed into law by Gov. Gretchen Whitmer. House Bill 5695, now Public Act 275 of 2024, requires the Michigan Department of Health and Human Services to apply for an amendment to the state Medicaid plan that will allow the department to establish and operate a supplemental reimbursement program. This is a voluntary federal program that reimburses eligible governmental entities for the difference between the actual incurred costs to transport a patient and the costs that are covered by Medicaid costs accrued through their public ambulance service.

“I am proud of this bi-partisan legislation that will bring federal tax dollars back to local communities,” McFall said. “This is especially important since local government budgets are increasingly tight with reductions in state revenue sharing and property tax fatigue. Several communities have the potential to receive hundreds of thousands of dollars in reimbursements from the federal government without an increased tax burden. This is a huge win for local governments, first responders, and taxpayers. I thank the governor and my colleagues for coming together to support this legislation. I am encouraged to see how much this legislation will positively impact our state and local communities.”

Michigan ranks 8th in Medicaid enrollees nationwide, with around 2.7 million participating residents. Approximately 160 local-run ambulance services would see as much as a combined $70 million in federal dollars through Medicaid reimbursement.

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