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State Senate Committee Proposes To Cut Coverage in Fiscal Year 2009 Medicaid Budget
On Thursday, the fiscal
year (FY) 2009 Michigan Department of Community
Health (MDCH) budget, SB 1094, was reported out
of the state Senate Appropriations Subcommittee
on the MDCH and now heads to the full Senate
Appropriations Committee for further
consideration.
The subcommittee's
recommendations did not contain any reductions
to Medicaid provider rates, graduate medical
education funding or the traditional
disproportionate share hospital line.
Additionally, the subcommittee restored the $5
million disproportionate share hospital payments
that were slated to be cut in the governor's
executive budget proposal. Under SB 1094,
physicians working in primary care specialties
would see modest increases in their
reimbursement.
Unfortunately, the
subcommittee eliminated Medicaid eligibility and
coverage for 19- and 20-year-olds. The
elimination of this patient coverage could
impact the hospital community by more than $9
million. The governor's executive budget
proposal did not contain any reductions to
patient eligibility and coverage.
Similar to the executive budget proposal, the
subcommittee's recommendations assumed a
continuation of the Hospital Quality Assurance
Assessment Program (QAAP) provider tax. The
executive proposal for the state to raise its
general fund share of the tax to $124 million in
FY 2009 is a significant increase over FY 2008,
and SB 1094 assumes the same amount. The MHA is
focusing its resources on establishing 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.
Michigan hospitals are
currently struggling to maintain the safety net
for the state's approximately 1 million
uninsured residents and more than 1.5 million
Medicaid recipients. These sobering numbers take
on new urgency when combined with the fact that
Michigan has the highest unemployment rate in
the nation. Hospitals are generally the only
source of care for most of these residents
and their families.
The Hospital Community Response
The MHA is currently working with Gov.
Granholm and state legislative leaders to
protect Medicaid funding, reduce the
state's retention from the hospital provider
tax, and restore patient eligibility and
coverage. For our advocacy efforts to
succeed, state 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.
-
Restore the
Medicaid eligibility and coverage cuts for
the state's vulnerable populations.
-
Reduce the state's share of the hospital provider tax.
The following tools will assist you in
contacting your state senator:
To locate your state senator, go
to our
Legislative Action Center and select My
Elected Officials. For instructions on how to
use the action center,
click here.
If you have any questions regarding this Action
Alert, please contact
David Finkbeiner at the MHA at (517)
703-8601. | 
