Fiscal Year 2018 State Budgets Pass House and Senate

Posted on May 05, 2017

The state House and Senate passed separate versions of the fiscal year (FY) 2018 Department of Health and Human Services (DHHS) budget. The House DHHS budget is contained in an omnibus bill, House Bill 4323, which was passed May 2. The Senate budget vehicle bill, passed May 4, is Senate Bill 135. Like the budgets reported from the respective appropriations committees, both versions mirror Gov. Rick Snyder’s executive recommendation by including the funding necessary to continue the MHA-supported Healthy Michigan Plan Medicaid expansion, which provides coverage for more than 650,000 Michigan residents.

In the House, an amendment was offered to restore the 10 percent reduction to the traditional $45 million Medicaid disproportionate share hospital (DSH) pool. This cut saves only $1.6 million in state general funds, but would reduce hospital funding by approximately $4.5 million due to the loss of federal matching funds. The amendment failed, but the MHA continues to work to restore the funding to achieve a full DSH pool in FY 2018.

As reported previously, graduate medical education, small and rural hospitals, and the obstetrics stabilization fund are protected in both versions of the budget. Together, these three pools represent more than $200 million in payments to hospitals to serve vulnerable populations and encompass three top legislative priorities identified by the MHA Board of Trustees.

Little action will be taken on budgets until after the May 17 state revenue estimating conference. Following the conference, the State Budget Office and legislative leaders will set targets for each budget sector; then conference committees will begin further deliberations. The Legislature is slated to complete its work on the budget in June. For more information, contact Chris Mitchell at the MHA.

Tags: DSH, budget, 2018 State Healthcare Budget, Michigan

Posted in: Issues in Healthcare

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