Policymakers in Washington are currently debating major legislation that includes changes that will significantly reduce federal spending on Medicaid, the program that provides health care coverage to almost a quarter of Michigan’s population.

While the bill has not been enacted, the legislation likely cannot achieve its other aims without changes that generate large decreases in federal spending on Medicaid. These Medicaid cuts will likely cause hundreds of thousands of Michigan residents to lose access to health care, either through direct loss of insurance coverage or by losing access to service providers that rely heavily on Medicaid funding to operate.

If the bill was enacted as currently drafted, Michigan would face between $2 and $4 billion fewer dollars flowing to Michigan annually. It is projected that at least 200,000 people in the state would lose direct insurance coverage, with even more people potentially losing services from providers that would struggle to operate sustainably following cuts to Medicaid. Rural providers are particularly vulnerable, creating a disparate impact on Michigan residents in certain parts of the state, straining an already struggling health care infrastructure.

Medicaid in Michigan

Medicaid in Michigan Medicaid provides health care coverage to a significant portion of the nation’s and each state’s population. Roughly 21 percent of the population nationwide and 23 percent of Michigan residents obtain health insurance through Medicaid. Michigan has the highest Medicaid enrollment rate in the region and the eighth highest nationally. Every Medicaid Expansion state has at least 18 percent of its population covered by Medicaid.13