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Proposed Senate Health Care Cuts Will Reduce Health Care Access for All Michigan Citizens
Date:6/16/2009

LANSING, Mich., June 16 /PRNewswire-USNewswire/ -- Proposed Senate cuts of more than $200 million in general fund support for Medicaid could reduce access to health care for many Michigan families and raise costs for everyone if the Senate budget recommendations are adopted by the state House and the governor. Combined with the loss of federal matching funds for Medicaid, the cut to health care could grow to more than $600 million, according to The Partnership for Michigan's Health.

The Partnership, which includes the Michigan State Medical Society (MSMS), the Michigan Osteopathic Association (MOA) and the Michigan Health & Hospital Association (MHA), urges the Senate to reconsider the proposed cuts and use the federal stimulus health care dollars as they were intended: to maintain the safety net for a record-high 1.7 million residents who rely on Medicaid for their coverage.

Members of the Partnership agree that it's simply not good public policy to cut health care at a time of skyrocketing Medicaid enrollment and unemployment, a statewide physician and nursing shortage, and increasing co-pays and deductibles which are leading residents to delay their care while their conditions worsen.

The Senate Appropriations Subcommittee on the MDCH recommended the following cuts pertinent to Michigan hospitals and physicians:

  • 8 percent cut to hospital and physician rates
  • a similar 8 percent cut to all other Medicaid providers
  • elimination of adult Medicaid optional services (chiropractic, podiatric, dental and hearing)
  • $10 million in savings that the MDCH is instructed to produce from Medicaid co-payments and premiums

An 8 percent cut to hospital inpatient and outpatient rates will result in lost funds totaling more than $112 million ($32 million in general funds and $
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SOURCE The Partnership for Michigan's Health
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