IMMEDIATE ACTION NEEDED:
State House Considering Adoption of Senate-Approved Substantial Medicaid Cuts to Balance the Budget

In an effort to avoid a government shutdown, the state House of Representatives will likely start passing Senate-approved budgets for state departments tomorrow (Tuesday, Sept. 15). This action is in response to budget negotiations between Speaker of the House Dillon, Senate Majority Leader Mike Bishop and Gov. Granholm that made little progress last week toward solving a projected budget deficit totaling at least $2.8 billion (general fund and school aid) for fiscal year (FY) 2010.

Under the Senate plan being considered by the state House, hospitals are facing an 8 percent cut to inpatient and outpatient rates, totaling more than $135 million ($36 million in general funds and $99 million in lost federal matching funds). Additionally, elimination of optional Medicaid services that occurred in the current fiscal year — podiatric, chiropractic, optometric, hearing and dental — are expected to continue into FY 2010.

In addition to direct hospital cuts, the budget will likely include a similar 8 percent Medicaid cut to physicians, long-term-care and mental health providers.

In June, the state Senate passed an 8 percent cut to hospital inpatient and outpatient rates, physicians, long-term-care and mental health providers. If the House approves the Senate cuts with no changes, the FY 2010 Medicaid budget will be sent to the governor for signature. 

The MHA is hearing from legislators that the health care community has not been very vocal during this last phase of the budget negotiations. As a result, our silence is being interpreted as accepting these cuts. The Senate-approved cuts are obviously unacceptable and we have a very narrow window to voice our opposition.

Hospital Community Must Respond NOW!

House leadership AND your state representative must hear from the hospital community that the Senate cuts to Medicaid providers and the elimination of optional health services are completely unsustainable for hospitals and the patients they serve in this unprecedented poor economic climate.

Please IMMEDIATELY contact ...

• Speaker of the House Andy Dillon: (517) 373-0857 or 888-REP-Dillon (737-3455)
• House Appropriations Chair George Cushingberry, Jr.: (517) 373-2276 or (800) 347-8008
• House Appropriations MDCH Subcommittee Chair Gary McDowell (517) 373-2629 or (888) REP-Gary (737-4279)
• Members of the state House

… and

• Articulate, from the patient perspective, the human impact an 8 percent cut to Medicaid reimbursement will have on your community hospital.
• Urge resolution of the state’s budget crisis — with an infusion of new federal stimulus dollars, NOT through continued MASSIVE CUTS — to protect health care services for all residents.
• Remind lawmakers that, for every $1 Michigan spends on Medicaid, the federal government sends an additional $2.74 to the state. So for every $1 the Legislature cuts from Medicaid, Michigan patients and providers lose $3.74 in essential health care funding.

Please immediately call Speaker Dillon and Appropriations Committee Chairman Cushingberry, House Appropriations MDCH Subcommittee Chair McDowell, and your state representative to convey the critical advocacy messages listed above. The hospital community must generate a groundswell of opposition to any proposal that contains health care funding reductions.

To locate your state representative, visit the 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) 703-8604.