Budget and Appropriations

The Academy's FY 2019 budgetary priorities include, but are not limited to:

  • Protecting Medicaid rates, eligibility and optional services
  • Protecting the Medicaid Primary Care Fee Uplift and making it permanent
  • Sustaining current funding levels for Graduate Medical Education (GME)
  • Preserving and increasing funding for the Michigan State Loan Repayment Program (MSLRP)
  • The Healthy Michigan Plan, which expands Michigan's Medicaid program to adults with at our below 133% of the Federal Poverty Level (FPL)

Medicaid Provider Rate Increase

Under the Affordable Care Act, states increased their Medicaid primary care provider rates to 100 percent of Medicare rates for certain services performed. The uplift, which was targeted toward primary care physicians, including family physicians, was originally implemented on January 1, 2013 and was fully funded by the Federal government through December 31, 2014.

Congress failed to appropriate federal dollars to continue the increase. Michigan was among a small minority of states that is funding an increase with state dollars to maintain provider rates at 78 percent of Medicare rates for certain primary care services.

Inadequate reimbursement for physicians trying to sustain their practices lead to barriers to access for Medicaid patients. If we are striving for better access to a family physician and primary care for all patients, financial incentives must be properly aligned, which is the thrust of this policy. It is particularly critical in Michigan, which is ranked 44th in the country for Medicaid reimbursement rates. Prior to the implementation of this policy, and currently for all other services, Medicaid pays around 55 percent of Medicare payment levels, which is extremely low considering that Medicare only pays 85 percent of physician costs.

For more information, on the Medicaid provider rate increase, click here.