Protect Health Care Funding in Lansing

State Senate Now Working on the Medicaid Budget

Gov. Jennifer Granholm recently released the fiscal year (FY) 2009 executive budget proposal, which is currently before the state Senate Appropriations Subcommittee on the Michigan Department of Community Health (MDCH). The governor's proposed budget did not contain any reductions to Medicaid provider rates, graduate medical education funding, the traditional disproportionate share hospital line or patient eligibility and coverage. Additional funding was added to account for increases in the Medicaid caseload.

However, the FY 2009 MDCH budget included several provisions that require further evaluation by the MHA. The executive budget eliminates the $5 million disproportionate share hospital payments that were established in FY 2005 to help address the cost of caring for the growing number of indigent and uninsured patients.

The executive budget also assumes a continuation of the Hospital Quality Assurance Assessment Program provider tax. The MHA is working with the administration and the legislature to establish a reduced but reasonable allocation to the state's general fund, while maintaining maximum flexibility within the program to keep the number of disadvantaged hospitals at a minimum.

On a related note, the MHA is supportive of the executive recommendation that proposes $10 million for the Nursing Corps Program within the Department of Labor and Economic Growth. This program will train 126 additional nursing faculty to help expand nursing education programs across the state. Additionally, the executive budget recommends $4.8 million in nursing scholarships.

Although debate on the budget has already begun in the state Senate, the Medicaid budget has a long way to go before final passage. David Finkbeiner, senior vice president, Advocacy, MHA, recently presented the association's areas of concern on the budget to the Senate Appropriations Subcommittee on MDCH, chaired by Sen. Roger Kahn (R-Saginaw). The Senate is projected to pass the MDCH budget by the end of March and then transfer it to the state House of Representatives for consideration.
The MHA is working with Gov. Granholm and state legislative leadership to protect Medicaid funding and patient eligibility and coverage. For our advocacy efforts to succeed, lawmakers need to hear from you, too!

Please contact your state senator to deliver these simple messages:

• We urge you to maintain current hospital funding and programs in an effort to protect affordable health care for all Michigan residents.
• We urge you to restore the $5 million disproportionate share hospital payments to ensure that patients across the state continue to have access to high-quality, cost-effective health care.
• We urge you to support funding for the Nursing Corps Program in an effort to alleviate the state's nurse staffing crisis, which is projected to grow to 18,000 nurses by 2015 in Michigan alone.

The following tools will assist you in contacting your state senator:

• FY 2009 State Budget Messages & Talking Points
• Sample Letter/E-Mail
• Medicaid Funding Reductions to Michigan's Nonprofit Hospitals from Fiscal Years 1996 - 2008