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Michigan lawmakers pitch budget with $3.7B healthcare funding cuts

09/03/2025|Source Author|

Michigan lawmakers released a budget proposal that would cut $3.7 billion in healthcare funding, according to a 9&10 News report.

Four things to know:

  1. The Michigan Department of Health and Human Services currently receives $25 billion to cover Medicaid beneficiaries and behavioral health services; the proposed budget would cut 13% of the funding.
  2. If passed, the budget would accelerate the start of Medicaid work requirements by one year to start at the beginning of 2026.
  3. Any state budget cuts would add to the federal budget healthcare spending cuts. The Michigan Hospital Association estimated the federal budget bill will remove $6 billion from the state’s hospitals over 10 years.
  4. There are around 20 Michigan rural hospitals in financial distress, some under severe distress. Adam Carlson, senior vice president of advocacy for the Michigan Health and Hospital Association, told 9&10 News the proposed budget “would really decimate healthcare” in the state.

The post Michigan lawmakers pitch budget with $3.7B healthcare funding cuts appeared first on Becker’s Hospital Review | Healthcare News & Analysis.

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