Gov. Whitmer's Budget Proposal Invests in Public Health

Gov. Gretchen Whitmer released her Fiscal Year 2024 executive budget recommendation, coming in at $79 billion—the largest state budget in Michigan’s history. It invests heavily in economic recovery and helping families address rising costs due to inflation, priorities the Governor outlined in the State of the State address she delivered in January. Her spending plan also funds programs focused on schools and students, infrastructure improvements, and public health.  

Should the executive budget recommendation be fully enacted as proposed, it would reflect a nearly 5% increase over the current state budget, reduce General Fund spending by almost 3%, and use all but $250 million of the state’s record $9 billion surplus.

Department of Health and Human Services Budget

Drilling down to the Department of Health and Human Services budget, Gov. Whitmer calls for continued and new investments in programs of importance to family physicians, namely:  

• $15 million for retaining the FY 2023 Medicaid payment increase for certain primary care and child wellness services; this will keep the Medicaid payment rate to at least 95% of the Medicare rate for the following CPT codes:
  • 99202-99205
  • 99211-99215
  • 99381-99387
  • 99391-99397
  • 99421
  • 99422
  • 99423
  • 99441
  • 99442
  • 99443
• $120 million for an additional Medicaid payment increase, $73.8 million of which is reserved for physician and non-physician billed professional services
• Continuation of $6.4 million in General Fund dollars for MIDOCs—the state-funded program established in 2017 to expand residency positions in primary care specialties and retain physicians in underserved areas in the state; this would make an additional $5 million in match funding available as well
• $80.9 million through the Centers for Disease Control and Prevention to strengthen the public health workforce and infrastructure in the areas of prevention, preparedness, and response to emerging health threats
• $29.7 million through the Centers for Disease Control and Prevention for expanding, training, and sustaining a response-ready public health workforce statewide
• $62.1 million to fund Healthy Moms, Healthy Babies, a program that supports pregnant women, new mothers, and young children
• $30 million increase in support to local health departments to provide essential services
• More than $445 million to ensure the safety and qualify of drinking water and protect against lead poisoning
• New funding to provide grants aimed at gun safety and gun violence prevention

MAFP Applauds Executive Budget Recommendation

This statement is attributed to MAFP President Glenn Dregansky, DO, FAAFP.

"With the ongoing need for increased access to healthcare services in our state, Michigan Academy of Family Physicians applauds Gov. Gretchen Whitmer for a fiscal year 2024 executive budget recommendation that calls for new and continued investments in programs supporting primary care and public health.

We are pleased the Governor is advancing her commitment to health equity for all, by building on the existing Medicaid payment rates that are so important for increasing access to care for the most vulnerable in our state.

Also important for increased access to care is the MIDOCs (Michigan Doctors Improving Access to Care) program, for which Gov. Whitmer calls for continued funding. MIDOCs expands residency positions in select medical specialties experiencing shortages, including primary care, and helps retain physicians in underserved communities. Training and retaining more physicians in Michigan are key for turning the tide on the physician shortage; thus, Michigan Academy of Family Physicians and our 4,200-plus members urge the Governor and Michigan Legislature to allocate more state funding for vital healthcare workforce programs like MIDOCs.

MAFP and our family medicine community look forward to continued collaboration with Gov. Whitmer and legislative leaders throughout the budget process, as we work toward the mutual goal of strengthening the health and well-being of individuals, families, and communities in our state."

Next Steps

As the next step in finalizing a balanced FY 2024 (Oct. 1, 2023 – Sept. 30, 2024) state budget, the House and Senate Appropriations subcommittees will now review the executive budget recommendation and begin shaping it to fit each chamber’s priorities.