Medicaid cuts could strip health care from 750,000 Michiganders
About 45% of all births in Michigan are covered by Medicaid
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Proposed federal Medicaid cuts could strip health care from 750,000 Michiganders and drain billions of dollars from the state’s hospitals, threatening access to care for pregnant women, people with disabilities, and residents in rural areas, according to a new report from the Michigan Department of Health and Human Services.
The report, released Friday by Gov. Gretchen Whitmer’s office, warns that Republican-backed proposals to slash $880 billion from Medicaid nationwide would cause “undue hardship” for the state’s most vulnerable residents and undermine Michigan’s health care system and economy.
Medicaid covers 45% of all births in Michigan and gives thousands of pregnant women access to essential prenatal care, medications, and medical procedures that support healthy pregnancies and safer deliveries.
“Proposed cuts could terminate health care for 750,000 of our friends, family, and neighbors, including many pregnant women and Michiganders with disabilities who rely on Medicaid to access basic and lifesaving care,” Whitmer said in a statement. “If these cuts go through, new parents would lose access to basic and lifesaving care. This is about protecting women’s health and ensuring Michiganders with disabilities can live with dignity and support.”
In Michigan, more than 2.6 million people rely on Medicaid. That includes more than 1 million children, 300,000 people with disabilities, and nearly half of all pregnant women. The Healthy Michigan Plan, the state’s Medicaid expansion program, provides coverage to an additional 750,000 low-income adults.
The cuts would disproportionately affect rural areas, where more than 60% of births are paid for by Medicaid. In those regions, hospitals rely heavily on the program to keep essential services like labor and delivery units open. According to the report, reduced funding could force closures, creating so-called “maternity care deserts” and forcing pregnant women to drive long distances for prenatal and emergency care.
State health officials warned the cuts would reverse a decade of progress. Since Medicaid expansion in 2014, uncompensated hospital care in Michigan has dropped by more than 50%, and the state’s uninsured rate has fallen to just over 5%. Without federal funding, officials say many hospitals, particularly in small towns and rural communities, could be forced to shut down or eliminate services.
The report also highlights the impact on people with disabilities, many of whom rely on Medicaid-funded home and community-based services for transportation, personal care, and energy assistance. Roughly $1.5 billion in Medicaid funding supports those programs each year. Cuts could force more people into institutions or hospitals, which are more costly and often less effective.
Medicare also provides funding for students with disabilities.
“Specifically, Medicaid ensures that they have access to vital health services such as counseling, speech therapy, nursing care, and mental health support directly at school,” Julie Shaw, director of the Superior Alliance for Independent Living in Michigan’s Upper Peninsula, said. “Cuts to Medicaid could terminate these services, resulting in many students struggling to succeed in the classroom and beyond.”
She adds, “Medicaid cuts threaten essential services that empower individuals to live with dignity, independence, and inclusion. We must invest in people, not abandon them.”
The report was issued by Whitmer in response to proposals in Congress to dramatically reduce Medicaid spending and restructure how states receive federal funding. Some of the changes under consideration include reducing the federal matching rate for Medicaid expansion, imposing work requirements, capping provider taxes, and replacing open-ended federal support with fixed block grants or per capita caps.
According to state projections, these changes would cost Michigan more than $1 billion annually. Without new state funding to make up the difference, the state would be forced to scale back or eliminate coverage for hundreds of thousands of people.
“Nearly 40% of Michigan adults on Medicaid could lose their health care due to administrative barriers tied to work requirements alone,” the report states, adding that most of those at risk already meet the requirements but may lose coverage due to bureaucratic complexity and reporting issues.
Health care providers also stand to lose. Michigan’s hospitals receive nearly $7 billion in Medicaid funding annually, or roughly 20% of their net patient revenue. If provider taxes are limited or eliminated, hospitals could lose more than $2.3 billion in Medicaid reimbursements, forcing job cuts and closures, especially in underserved communities.
The cuts would also ripple through the state’s economy. Michigan’s health care industry is the largest private employer in the state, with an annual economic impact of $77 billion. Medicaid expansion has created more than 30,000 jobs, according to the report, and contributes an estimated $150 million in tax revenue annually.
“These Medicaid cuts are a direct attack on the ability of Michiganders to build and protect their families,” Stephanie Jones, Executive Director of Michigan Fertility Alliance, said. “Fertility healthcare, prenatal care, and pregnancy support are not luxuries — they are essential healthcare. Stripping away access will force people to delay or forgo care altogether, including routine screenings that safeguard fertility, especially in rural and underserved communities. The result will be more infertility, more pregnancy complications, and more families left without options. We cannot stand by while the health and futures of thousands are jeopardized.”
The Whitmer administration has urged Congress to abandon the proposed cuts and instead strengthen Medicaid by extending federal subsidies, expanding services like telehealth, and continuing to invest in programs that improve access to care.
