LANSING, Mich. – Today, Governor Gretchen Whitmer signed an executive directive instructing the Michigan Department of Health and Human Services (MDHHS) to compile a report identifying the impact Republican-proposed cuts to Medicaid will have on the 2.6 million users in Michigan. Specifically, the report will investigate the potential impact the cuts would have on people’s health.
“Medicaid provides a lifeline to 2.6 million Michiganders, whether they need their annual physical or their third round of chemotherapy,” said Governor Whitmer. “Cuts to Medicaid could take health care away from 750,000 of our friends, neighbors, and families. That’s why I’m proud to support access to Medicaid in our state by signing this executive directive. I’m committed to helping folks get the care they need without worrying about the bill. Because here in Michigan, getting sick shouldn’t mean going broke. I’ll work with anyone who is serious about protecting access to affordable health care. Let’s get it done.”
Medicaid Executive Directive
Under the executive order, MDHHS must review federal budget proposals and prepare a report quantifying the impact of Congress’ proposal within 30 days. The report, drawing from available analyses, should delineate the specific impact of proposed cuts to including Medicaid, including:
- 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, such as the creation or expansion of healthcare deserts in areas of the state.
- The ways in which reductions in federal money would impact the state’s budget, including the need for cuts to other vital services.
Today’s executive directive bolsters the Whitmer-Gilchrist administration’s commitment to protecting and expanding access to affordable health care for all Michiganders.
“Medicaid cuts could impact more than 750,000 Michiganders, including children, people with disabilities, veterans, rural communities, and the elderly,” said Lt. Governor Garlin Gilchrist II. “They will make you pay more and travel farther to get care. Today, we are taking action to protect access to affordable health care for working families. We’ll stand tall so every Michigander can go to a doctor when they’re sick without going broke.”
Republican-Proposed Cuts to Medicaid
Recently, Republicans in Congress announced a plan to cut $880 billion from Medicaid, so they can deliver a $4 trillion tax cut that would primarily benefit the rich. If passed, this would be the largest cut to Medicaid in its 60-year history. Nationwide, millions would lose access to health care and the cost of health care will go up for every single American.
In Michigan, as many as 750,000 people could lose access to basic, lifesaving health care. The cuts will be particularly stark in small town and rural Michigan where 37% of residents are covered by Medicaid. Additionally, they would force providers in Michigan to close their doors and reduce the variety of services, affecting coverage for those who can least afford care, including children, disabled people, and the elderly.
“Beyond the 2.6 million individuals directly covered, Medicaid supports health care infrastructure in every community across Michigan — from rural hospitals to community health centers to nursing homes to home care and mental health,” said U.S. Senator Elissa Slotkin. “If Medicaid is cut, it will impact all Michiganders, whether you use it directly or not. It’s important the State is being clear eyed about what’s coming and will issue a report detailing those impacts.”
“Congressional Republicans have proposed the biggest cuts to Medicaid in history, which would strip health coverage from millions of Americans, including 2.6 million Michiganders,” said U.S. Representative Debbie Dingell. “Medicaid is already a lean program. With few options for how to fill the budget hole left by cuts to Medicaid funding, our state will have no choice but to consider cuts to coverage and benefits, leaving more people uninsured and underinsured. I’m thankful to Governor Whitmer for her efforts to fight against these cuts, and I will continue to do absolutely everything I can to prevent millions of Michiganders from losing their health care.”
“Medicaid is a lifeline for over 3 million Michiganders, and in my district, 291,000 families, seniors, and people with disabilities depend on Medicaid,” said U.S. Representative Rashida Tlaib. “I’m grateful that Michigan is taking this critical step to shine a light on the real harm these cuts would cause to our communities. From Detroit to Dearborn to Livonia, I’ve heard from countless constituents who are terrified that they may be losing essential benefits and care. We can’t let that happen. Grandmothers raising grandkids with special needs, mothers who need prenatal and postpartum care, are at risk of losing coverage without warning. We cannot allow partisan cruelty to rob our communities of the care they need to survive.”
“In Michigan’s 13th District alone, over 333,000 people rely on Medicaid, including nearly 140,000 children and 24,000 seniors,” said U.S. Representative Shri Thanedar. “I applaud Governor Whitmer for taking action to expose the devastating consequences of Republican budget proposals. The data will show what we already know: slashing Medicaid would devastate working families and put the lives of Michiganders at risk.”
“Millions of Michiganders, including children, seniors, and people with disabilities, depend on Medicaid to survive,” said U.S. Representative Hillary Scholten. “We need to fully understand the devastating consequences that cuts to this lifeline would have on our communities because no one should be forced to choose between their health and their financial stability. This report is urgently needed because the stakes couldn’t be higher. While Trump pushes cruel cuts to hand more tax breaks to the ultra-wealthy, we will keep fighting to protect this vital program.”
“Gutting healthcare for Michigan’s working families to give a tax break to billionaires is unconscionable,” said U.S. Representative Haley Stevens. “I will continue to fight these attacks on Michiganders’ care in Congress and work alongside our great Governor to protect our state’s workers, families, and children.”
Medicaid’s Role in Supporting Michigan’s Economy
Medicaid plays a key role in supporting the health of Michigan’s economy. Michigan’s health care industry has a total economic impact of $77 billion per year: greater than any other industry in the state. Medicaid expansion alone sparked the creation of more than 30,000 new jobs. These jobs boost the personal spending power for Michigan residents by about $2.3 billion each year and result in approximately additional $150 million in tax revenue annually.
If Republicans succeed, Michigan hospitals could lose out on half a billion dollars in Medicaid funding annually, threatening thousands of jobs. As a result, hospitals in local and rural communities across Michigan will close, threatening access to care, raising prices, and forcing people to drive further for health care. This could drive Michiganders out of our state, reducing our population growth and crippling our economy.
“Ever since the original federal funding freeze that was implemented months ago on Medicaid payments to hospitals and Federally Qualified Health Centers (FQHCs,) I have been deeply concerned about the impact on the health of our most vulnerable residents,” said state Representative Julie Rogers (D-Kalamazoo), Ranking Member of the Medicaid and Behavioral Health Appropriations subcommittee. From seniors to newborns, these across the board slash and burn tactics do nothing to increase government efficiency. In fact, the proposed deep cuts will have the opposite effect: as primary care offices empty, hospitals will be over-crowded, and costs will dramatically go up. I applaud Governor Whitmer for taking a proactive approach to conduct an assessment of the potential impact to Michigan.”
“Over 2.5 million Michiganders rely on Medicaid for their health coverage. This program is a vital lifeline for families, seniors, children, and people with disabilities across our state,” said state Senator Sylvia Santana (D-Detroit), Chair of the Senate DHHS Appropriations subcommittee. “Access to affordable, quality care isn’t just a convenience — it’s a necessity that protects lives, strengthens communities, and ensures that no one is left behind. Without Medicaid, countless Michiganders would face impossible choices between their health and their financial stability.”
“Michigan families will lose their health care under these proposed Medicaid cuts,” said Elizabeth Hertel, Director of MDHHS. “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. MDHHS is committed to fighting for Michigan residents so they can keep their health care coverage and access the services they need and when they need them.”
“Here in Michigan, Medicaid covers nearly 300,000 Michiganders, ensuring they can get the care they need without compromising on costs,” said Julie Shaw, Executive Director of the Upper Peninsula Superior Alliance for Independent Living. “I’m grateful to Governor Whitmer for taking this critical action to support access to Medicaid, so disabled Michiganders can continue receiving basic and lifesaving care in the UP and across the state.”
“In Northern Michigan, 75,000 residents across the region and 61 percent of our births at Cadillac Hospital are covered by Medicaid,” said Ed Ness, President and CEO of Munson Healthcare President. “In addition to impacting thousands of people and families who are already struggling, without adequate funding healthcare facilities like ours will face immense challenges in maintaining operations and serving our communities.”
“Hospitals serve as the backbone in our communities and Medicaid is key for maintaining the viability of a hospital and access to care for Michiganders,” said Laura Appel, Michigan Health & Hospital Association Executive Vice President of Government Relations & Public Policy. “Going after and restricting existing Medicaid financing programs will harm access to care for not just Medicaid beneficiaries, but all community members who depend on health care services, particularly those in rural Michigan.”
Protecting and Expanding Michiganders’ Access to Health Care
Since taking office, the Whitmer-Gilchrist has worked to lower the cost of health care and support Michiganders’ access to critical programs like Medicaid:
- Extended Healthy Michigan Plan to over one million people, expanding access to care and lowering costs for working families.
- Signed bills codifying the Affordable Care Act into state law, protecting care for millions.
- Signed a budget increasing reimbursement rates to Medicaid, expanding access to mental health services at schools, and expanding Plan First!, helping 25,000 Michiganders strengthen reproductive freedom.
- Expanded access to dental care for Medicaid or Healthy Michigan enrollees, lowering their costs. Expanded access to telemedicine and required insurers to cover telehealth.
- Established and expanded Healthy Moms, Healthy Babies, an initiative to address disproportionate racial impacts of maternal and infant mortality and ensure moms have the support they need for healthy pregnancies, deliveries, and postpartum care.
- Established and expanded RxKids, the nation’s first-ever program that puts money directly in the pockets of new moms and babies to improve their finances and health.
- Committed to working across the aisle to reduce the burden of medical debt for nearly 700,000 Michiganders.