LANSING — Northern Michigan medical providers say that the recently passed state budget maintains billions of dollars in critical healthcare funding.
The plan avoids millions in proposed reductions that they say would have added to the pressure experienced by rural health systems.
“Sometimes fighting for sort of the status quo, rather than cuts that are facing others, is a considerable win,” said Deidra Wilson, vice president of government relations with McLaren Health Care.
The state budget maintains all existing healthcare spending, including full funding for state and federal Medicaid plans.
“I think this budget was one where preservation was key,” Wilson said.
Both the Munson and McLaren hospital systems previously warned that millions of dollars in proposed cuts would jeopardize access for individual patients and lead to potential service reductions.
But the final product, which was supported by nearly all state lawmakers, maintains funding that healthcare providers say is essential.
“The bill that was passed does protect all of the key priorities that we had going into this budget cycle,” said Gabe Schneider, director of government relations for Munson Healthcare.
Michigan House Republicans had also proposed moving up the start of Medicaid work requirements by one year to the start of 2026.
That policy was dropped from the final product, a decision that hospitals say will help them continue offering essential services.
“What we saw with the state-passed budget was sort of a reinforcement of support at the state level to Medicaid and the Healthy Michigan Plan, which were fully funded, as well as all of our other rural healthcare priorities that were also funded,” Schneider said.
To offset some Medicaid cuts, the v included $50 billion for rural hospital support over the next five years.
The state budget doled out $250 million of that funding, which providers say will go toward ensuring access for rural communities and keeping hospitals running.
“Everybody was on the same page in this budget — that we should do everything possible to get the portion of the rural health funding from the federal bill that that is due to us,” Wilson said.
But providers say that some challenges remain — the Health and Hospital Association estimates that Michigan hospitals will lose more than $6 billion in the next 10 years due to the federal policy changes.
“I think we will go into even more difficult times in the next budget,” Wilson said. “We’re only about five months away from the next budget, and so this is a good foundation going forward — but we will always be keeping an eye on this.”
