The Michigan Legislature approved the fiscal year (FY) 2025 state budget the week of June 24 which the governor is expected to sign into law next month. The budget proposal fully funds the Michigan Medicaid program, including significant increases to provider-funded Medicaid reimbursements in FY 24 and 25. The budget also includes a new, $8.3 million investment to support peer recovery coaches in hospitals to enhance substance use disorder services.
Additionally, the agreement provides necessary resources to assist hospitals in advancing the health of individuals and communities throughout our state. This includes:
- Maintaining funding for the Healthy Michigan Plan.
- Preserving outpatient Medicaid rate increases achieved during prior budget cycles.
- Continuing funding for the rural access pool and obstetrical stabilization fund.
- Investing an additional $10 million in maternal and infant health programs at hospitals.
- Establishing a new, $9 million nursing loan repayment program.
- More than $31 million in additional, direct hospital appropriations.
A statement on the passage of the budget was also published by MHA CEO Brian Peters June 27. The MHA will continue to advocate the state use portions of the funding to provide the resources necessary for hospitals and health systems to care for all Michiganders.
Members with questions on the state budget may contact Adam Carlson at the MHA.