Michigan’s FY 2025 Budget: Balancing Priorities in Healthcare PDF Print Email
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Tuesday, May 07, 2024 11:06 AM

Michigan’s FY 2025 Budget: Balancing Priorities in Healthcare

This week, the Michigan Legislature began taking procedural steps to prepare the Fiscal Year 2025 budgets for negotiation. Notable differences between the House and Senate Appropriations committees’ recommendations and the governor’s proposal include adjustments to funding for various programs. Let’s break it down:

Senate’s DHHS Budget:

  • Closely aligns with the governor’s proposal in overall funding levels but includes some notable differences.

  • Includes adjustments to funding for the Temporary Assistance for Needy Families (TANF) program, Medicaid reimbursement rates, juvenile justice programs, and one-time funding items.

  • Introduces boilerplate language to safeguard the privacy of individuals seeking abortion services in Michigan.

  • Proposed budget: $37.71 billion (with $6.68 billion allocated from the General Fund), coming in $110 million higher than the governor’s proposed $37.6 billion budget for DHHS.

House’s DHHS Budget:

  • Allocates $53.4 million from opioid settlement funds toward opioid recovery and addiction care services.

  • Adjusts Medicaid reimbursement rates, foster care administration rates, and funding for behavioral health initiatives.

  • Prioritizes one-time projects, including investments in public health and community violence prevention.

  • Proposed budget: $35.9 billion (with $6.6 billion allocated from the General Fund). Total budget is $1.81 billion less than the governor’s DHHS budget proposal.

Both Budgets Maintain Funding for MAFP Priorities:

  • MIDOCs Program

  • Increased Medicaid reimbursement rates

  • Michigan State Loan Repayment program

Overall, the Senate and House Budget Recommendations exhibit nuanced differences, reflecting varying priorities in healthcare, social services, and public health initiatives. Updated revenues for Fiscal Year 2025 will be presented on May 17 at the next Consensus Revenue Estimating Conference.

Medicaid Renewals Surpass 1.5 Million

The Michigan Department of Health and Human Services (MDHHS) recently announced the renewal of Medicaid and Healthy Michigan Plan coverage for an additional 141,471 individuals, bringing the total number of beneficiaries to over 1.5 million. This renewal effort coincides with Medicaid Awareness Month, recognizing Medicaid as the largest insurance program in the United States. 

MDHHS Director Elizabeth Hertel emphasized the importance of maintaining healthcare coverage for residents, highlighting efforts to streamline the renewal process and ensure access to quality, affordable care. Strategies such as extending renewals and providing additional support aim to reduce the risk of coverage loss. Michiganders are encouraged to submit renewal paperwork promptly, with resources available online to facilitate the process and explore alternative coverage options if ineligible for Medicaid. 

During MAFP’s Advocacy Day on March 20, Michigan’s primary care doctors underscored the importance of coverage through the Healthy Michigan Plan and Medicaid. The successful renewal of so many beneficiaries will provide long-term savings within Michigan’s healthcare spending.

 

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