Michigan Cuts Medicaid Reimbursement by 4% for Healthcare Providers

Michigan Governor Jennifer Granholm issued an executive order to cut $304 million from the state’s general fund budget, which included a 4 percent reduction in Medicaid reimbursement for healthcare providers, according to a report in Crain’s Detroit Business.

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The cut would generate $16 million in state general fund savings; however, total Medicaid payments would be reduced by nearly $53 million, factoring in a $37 million loss of federal matching funds, providers said in the report.

Representatives from several professional healthcare societies in Michigan, including the Michigan Health & Hospital Association and the Michigan State Medical Society, said that cuts to hospitals, physicians, long-term care and mental health providers would hurt access to care amid the rising numbers of Medicaid and uninsured patients.

Read the Crain’s report on the Michigan Medicaid cuts.

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