Opinion | Reckless cuts to Medicaid would threaten Michigan’s health, economy

When politicians consider budget cuts, Medicaid is usually one of the first programs to be scrutinized, and once again, it’s under attack. Congress is proposing an $880 billion cut over the course of 10 years — a devastating blow to health care in all 50 states, and one that would hit Michigan especially hard.

A strong economy depends on a strong health care system, and as the top employment sector in our state, employing more than 1 million residents, our economy only stands to suffer. Meanwhile, the motivation behind these cuts — while under the guise of rooting out fraud and waste — is far more nefarious.

One in every four Michiganders — our neighbors, friends, and family — are enrolled in Medicaid or the Healthy Michigan Plan. This includes children with special medical needs, seniors in nursing homes, individuals receiving home health care and hospice, and those battling mental illness and substance use disorders. It also supports working families who earn just below the poverty line and have nowhere else to turn for health care. Gutting $1.7 billion annually from Michigan’s trusted health care system over an arbitrary budget target is both irresponsible and dangerous.

Navigating the private and public health care system has become too complicated. With less bureaucratic oversight, it could be streamlined, resulting in cost savings and improved care. I agree that reforms are needed, but they must be done thoughtfully and responsibly — not through reckless cuts that will harm our economy and leave people without lifesaving care.

Given my previous roles working in government at the state and federal levels, I know that reforming federal rules and regulations would be a good starting point. The current federal rules and regulations have over 20,000 pages that need to be consolidated and streamlined. An undertaking such as this could result in significant cost savings.

We also need more innovation in health care to achieve positive health outcomes, and that’s a perfect reform where states can be a leader. For instance, we need to move Medicaid away from a fee-for-service model to a payment reimbursement based on value-based care (positive outcomes). Medicare pays in bundled rates, which streamlines a traditional fee-for-service model, and it’s something Medicaid could adopt with ease. In Michigan, each geographical area has differing rates and sets boundaries for services. By having benefits be portable and standardizing services throughout the state, we could both improve care and the costs associated with it. 

There’s then the argument that Medicaid is riddled with fraud and waste, but Michigan already holds providers accountable. The Michigan Department of Health and Human Services employs investigators who, in 2023 alone, saved $295 million through fraud detection and cost avoidance. The Michigan Attorney General’s Office also has staff members dedicated to prosecuting fraud. If the true intent of these federal changes was efficiency, they wouldn’t have gutted inspector general oversight at the national level.

Medicaid saves lives, improves health outcomes, and extends life expectancy. Instead of treating it as a burden, we should take pride in ensuring all residents have access to quality care. When you consider real options for reform that could truly benefit taxpayers, the true motivation behind these “cuts” becomes astoundingly clear: to fund tax breaks for corporations and the wealthy — at the expense of those who need care the most.

We still have time to prevent an economic and health crisis in Michigan. Call your representatives and senators, demand better, and let your voices be heard.