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Great Lakes Wire

Thursday, September 11, 2025

Michigan state officials press Congress to protect Medicaid amid budget cut plans

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Laura Blodgett Senior Deputy Director, Communications Administration | Michigan Department of Health & Human Services Website

Laura Blodgett Senior Deputy Director, Communications Administration | Michigan Department of Health & Human Services Website

State officials and healthcare leaders convened in Cadillac, Michigan to address concerns over potential Medicaid funding cuts. The discussion was centered around the implications of these cuts on rural hospitals and communities.

The State of Michigan is pressing Congress to safeguard Medicaid funding, a lifeline for healthcare coverage in the region. Due to an expected partisan budget reconciliation bill, critical Medicaid programs may face reductions, affecting the care of 2.6 million Michiganders, particularly in rural areas.

“Many Michigan residents will lose their health care under these proposed Medicaid cuts,” noted Elizabeth Hertel, the Michigan Department of Health and Human Services Director. She emphasized the potential strain on emergency care systems resulting from decreased access to preventative services.

Medicaid presently covers about one in four Michiganders, including a substantial percentage of children and rural residents. Cuts could mean losing over $20 billion in Medicaid funding over ten years, with 750,000 people at risk of losing coverage.

Susan Corbin, Director of the Michigan Department of Labor and Economic Opportunity, stressed, “We are urging our members of Congress to consider the detrimental short- and long-term economic and human impacts of cutting Medicaid funding.” Highlighting the economic repercussions, she pointed out the potential job losses and decreased local revenues.

Healthcare acts as Michigan's largest private sector employer; hence, Medicaid cuts could destabilize rural economies, leading to job losses, especially when hospitals are significant employers. The cuts could also result in migration from rural areas and increased emergency response times.

Medicaid's role in supporting Michigan's 65 rural hospitals, along with essential services like emergency care and mental health support, was addressed by Ed Ness, President and CEO of Munson Healthcare. He underscored, “In Northern Michigan, 75,000 residents across the region and 61 percent of our births at Cadillac Hospital are covered by Medicaid.”

Overall, the proposed Medicaid cuts are seen as a threat to patient care, healthcare providers, and community stability in Michigan.

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