FY 2020 MDHHS Budget Heads to House and Senate for Final Vote

With Fiscal Year 2020 kicking off on October 1, 2019, the administration and legislature continue to negotiate the amount of funding that will be allocated to state departments, programs, and initiatives.

While the House and Senate passed many department budgets on September 19, the Michigan Department of Health and Human Services (MDHHS) House and Senate Conference Committee met to consider a compromise bill that works out the differences between the chambers’ previously passed MDHHS budget proposals. By a vote of 5-0, with one abstention, the Conference Committee passed the MDHHS $26.452 billion budget.

Included is a shift in money for the Healthy Michigan Plan, which, despite a budget reduction, increases general fund dollars as the federal match for the program is reduced. The Conference Committee report brought no changes to GME funding, Michigan State Loan Repayment Program funding, or Medicaid primary care physician reimbursement rates. Other notable outcomes from the report include:

  • Omission of an additional $10 million for employment- and training-related services for implementation of the Healthy Michigan Plan work requirements, as was originally included in the budget proposal
  • Reduction of $1.3 million from MIDOCS due to a lower than anticipated inaugural cohort
  • Reduction of $2 million for 2018-2019 policy changes limiting opioid prescriptions to seven days and reducing morphine equivalent dose limits to align with CDC guidelines

The MDHHS Conference Committee budget will now be presented to each chamber for passage before it is sent to Governor Whitmer for her review and approval.