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Governor Issues 6% Medicaid Cut —
“Code Blue” Crisis
Worsens
Contact Your Legislators Immediately!

On April 30, Gov. Jennifer
Granholm announced a
6 percent Medicaid reimbursement cut
to
hospital inpatient and outpatient rates,
Disproportionate Share Hospitals and Graduate
Medical Education in an attempt to balance the
state budget for fiscal year 2007. If
these administrative cuts are enacted June 1,
2007, hospitals will be cut $30 million between
June 1 and Sept. 30.
In addition to the
hospital cuts, the governor’s announcement
included a 6 percent Medicaid cut to physicians,
nursing homes and mental health providers.
This administrative
action is separate from legislative proposals to
reduce Medicaid currently under consideration by
the state House and Senate. It is unknown what
action the Legislature will take in response to
this announcement; however, the chance exists
that this newly announced cut will be in
addition to, not in lieu of, the cuts
proposed formerly by the legislature.
The
House recently voted to cut Michigan hospitals
$28 million and the
Senate $13.4 million for the remainder
of fiscal year 2007.
NEXT STEPS
The MHA is receiving feedback that many
lawmakers have NOT heard from their
hospitals, making these proposed cuts closer to
reality. Michigan hospitals are being again
urged to IMMEDIATELY contact every state
lawmaker and the governor to:
-
Describe the realities that
have caused this declaration of Michigan
health care’s
Code Blue.
-
Urge them to
take the necessary steps to properly fund
health care services to end this emergency.
-
Insist they
convey your message to their respective
political leader.
-
Submit comments
to the Medical Services Administration
regarding
Policy Bulletin MSA 07-23
immediately.
To locate your state
representative and senator, visit our
Legislative Action Center and select My
Elected Officials. For instructions on how to
use the action center,
click here.
Due to the
significance of this issue, MHA members are also
urged to directly contact the top four political
leaders of the Legislature:
-
House Speaker
Andy Dillon (D-Redford Township): (517)
373-0857
-
House Minority
Leader Craig DeRoche (R-Novi): (517)
373-0827
-
Senate Majority
Leader Mike Bishop (R-Rochester): (517)
373-2417
-
Senate Minority
Leader Mark Schauer (D-Battle Creek): (517)
373-2426
The hospital
community must mobilize to strongly express our
opposition to any proposal that contains
additional health care funding reductions. These
cuts are real until proven otherwise and
inaction by Michigan hospitals would only serve
to embolden those who wish to slash Medicaid
funding.
Click here for Key
Messages & Talking Points and click
here for a sample letter.
Please IMMEDIATELY contact your
state representative AND senator AND Gov.
Granholm and encourage them to cease actions
that have warranted this
Code Blue on
Michigan health care services and jobs.
If you have any
questions regarding this Action Alert, please
contact the MHA’s
David Finkbeiner or
Lori Latham at (517) 703-8601. |