Leading Michigan to Better Health Budget InformationProtecting Healthcare Funding and Access

Every year, a top priority of the MHA is working with the Legislature and various state agencies to ensure that healthcare funding is protected, and access to coverage and affordable, high-quality care is maintained. Millions of Michigan residents are covered by Medicare or Medicaid, and these public payers make up a large portion of hospital reimbursement.

Every year, the MHA works to protect funding pools designated for graduate medical education (see below), Obstetrics Stabilization, which helps keep birthing units open in at-risk communities, and Small and Rural Access, which assists with ensuring access to hospital services in Michigan's smallest communities.

FY 2019 State Budget Talking Points

Background

Michigan Gov. Rick Snyder presented his executive budget recommendation to the Legislature on Feb. 7, 2018. The executive budget proposal for fiscal years (FY) 2019 and 2020 maintains state support for three MHA Board-identified priorities: funding for graduate medical education (GME) at $57 million general fund (GF);  the small and rural access pool at $12 million GF; and the obstetrics stabilization fund at  $4 million GF.  

Budget Details and Messaging

  • Overall, the MHA supports the FY 2019 executive budget recommendation regarding the Department of Health and Human Services (DHHS) budget as proposed. It keeps intact Medicaid funding for three critical programs with demonstrated success that provide access to care for millions of residents, many of whom are uninsured and/or live in rural areas where there is no other source of care. 
  • As a direct result of the efforts of the MHA Advocacy and Policy teams’ work with DHHS, the changes to the Medicaid hospital rate adjustment (HRA) program to comply with the Centers for Medicaid & Medicare Services (CMS) managed care rule in FY 2018 are continued in FY 2019. These changes increase the HRA by $200 million for Michigan hospitals. This change also increases the state retention by $21.2 million in FY 2019.
    • The executive budget includes  $7 million in GF for the rural access and OB stabilization pool hospitals. Based on projections from state economists during the Consensus Revenue Estimating Conference held May 16, 2018, revenue estimates for the state's general fund during fiscal years 2018 and 2019 are expected to increase by nearly $228 million. As the Legislature moves forward with finalizing the state budget following the May revenue estimating conference, the MHA will resume its advocacy efforts to secure a total of $10 million for funding that benefits rural hospitals and hospitals that continue to provide obstetrical services in underserved regions of the state.
    • The governor’s office recognizes that the MHA will continue its efforts to increase funding for rural access and obstetrical hospitals to a total of $10 million for both FY 2018 and FY 2019.
  • Healthy Michigan Plan – the state’s obligation is fully funded. The MHA will continue to work with this and future administrations and legislatures to ensure its protection at the state and federal levels.
  • Medicaid reimbursement rates remain the same, including the uplift for primary care physician services to the midpoint between Medicaid and Medicare rates.

Members with questions may contact Chris Mitchell at the MHA at (517) 703-8601.

Graduate Medical Education

GME report coverState funding for graduate medical education (GME) helps support and build the healthcare workforce of the future by ensuring hospitals can teach and train physicians. Medical residents care for some of Michigan's most sick and vulnerable, yet protecting GME is critical to maintaining access to care for all Michiganders. 

For details about how GME benefits Michigan's healthcare workforce, economy and community health, check out our 2018 GME infographic.

Leading Michigan to Better Health

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