Health Care Law Blog

Under the proposed Medicaid expansion, which is part of federal health care reform requirements, uninsured Michigan residents earning up to 133% of the federal poverty level--$11,702 for a single person and $23,021 for a family of four--would be included.  That means an estimated 400,000 to 500,000 Michigan residents would participate in Medicaid.

The federal government will cover the entire cost of the expansion, estimated at $1.5 billion to $2 billion, until 2016. At that point, states will have to cover 10% of the cost.  To help Michigan cover its share, Governor Snyder has proposed depositing 50% of the current savings into a health savings account, which he claims could cover Michigan’s 10% share until 2035.  

According to the Detroit Free Press (2/4/13), House Speaker Jase Bolger expressed cautious skepticism that Medicaid would be “affordable in the long term.” (Republicans are concerned that the federal government will cease funding in the future.) The Washington Times (2/7/13) added that “Mr. Snyder’s office said their proposal ‘contains safeguards that ensure the program’s financial stability and protect against changes in Washington’s commitment.’”

The proposed Medicaid expansion is approved by a number of health care providers, including the Michigan Health and Hospital Association, the Michigan Association of Health Plans and AARP Michigan, according to Crain’s Detroit Business (2/6/13, Subscription Publication). The Small Business Association of Michigan also supports the proposal because it would reduce the cost shifting burden experienced by those who have health insurance but pay higher rates in order to compensate for those without insurance.