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Federal Wrangling May Negatively Impact Michigan’s Medicaid Program

Michigan’s budget may be threatened by U.S. Congressional action. Crain’s Detroit Business reported that Congress’ concern over the nation’s deficit may affect its willingness to pay for an estimated $24 billion in Medicaid assistance to states and other financial assistance, leading to the removal of the enhanced Federal Medical Assistance Percentage (FMAP) provision from legislation pased by the U.S. House in May.

Due to these cuts, Michigan lawmakers are concerned that Michigan may not receive $514 million in Medicaid “matching” funds from the federal government. The amount was already factored into the fiscal year 2011 budget for the Michigan Department of Community Health. If Michigan does not receive this funding it may result in deep cuts in various programs, such as Medicaid prescription drug coverage, payments to Medicaid providers, mental health services, revenue sharing and university funding.

For more information on Michigan health care, please visit www.wachler.com or contact a Wachler & Associates attorney at 248-544-0888.