House, Senate Advance Budget Proposals; MHA-Supported Bills Move

Budget proposals from the House and Senate advanced in their respective chambers, while MHA-supported legislation saw action during the week of April 20.

House Bill (HB) 5619, sponsored by Rep. Ann Bollin (R-Brighton), passed the Michigan House April 22. The bill contains all state funding for fiscal year 2026-27, including the budget for the Michigan Department of Health and Human Services (MDHHS). Within the MDHHS portion, the bill includes:

  • Full funding for Medicaid, except for a reduction of $300 million in unspecified savings
  • Recognition of hospital provider taxes and the ability to access those funds without additional legislative action or administrative barriers
  • Specialty Network Access Fee funding
  • Support for rural and obstetrics stabilization pools
  • Funding for Maternal Levels of Care verification
  • $22 million and additional state employees to implement Medicaid work reporting requirements as required by H.R. 1
  • Language encouraging timely allocation of Rural Health Transformation Program funds

The Senate advanced its MDHHS budget under Senate Bill (SB) 857, sponsored by Sen. Sarah Anthony (D-Lansing). Key highlights of the bill include:

  • Full funding for Medicaid
  • Recognition of hospital provider taxes and the ability to access those funds without additional legislative action or administrative barriers
  • Specialty Network Access funding
  • Support for rural and obstetrics stabilization pools
  • Funding for Maternal Levels of Care verification

Unlike the governor’s executive recommendation and the House proposal, the Senate plan does not include unspecified Medicaid savings. Instead, it identifies funding through caseload adjustment savings, Most Favored Nation drug pricing savings and other efficiencies. The Senate Appropriations Committee passed this bill out of committee to the full Senate on April 23.

The MHA will continue working with lawmakers to ensure the final product maintains support for hospitals, providers and patients.

In addition, the Senate approved SB 301. Sponsored by Sen. Joe Bellino (R-Monroe), the MHA-supported legislation would provide a tax credit to employers whose employees take time off to serve as living organ donors. The bill has been referred to the House Finance Committee.

Senate Bills (SB) 590 and 591 were taken up for testimony in the House Health Policy Committee. The bills would strengthen the state’s Good Samaritan Law for all individuals acting in good faith when applying bleeding control techniques in emergency situations. SB 590 and SB 591 are sponsored by Sen. Stephanie Chang (D-Detroit) and Sen. Rick Outman (R-Six Lakes), respectively. The MHA supports this legislation.

Members with questions may contact the MHA advocacy team.

House Budget Proposal Advances; Other Hospital Bills See Action

Several healthcare bills, including mandatory nurse overtime, medical debt collections, prescribed pediatric extended care facilities and the Michigan Department of Health and Human Services (MDHHS) budget, saw action in the legislature during the week of April 13.

The Michigan Senate voted in support of Senate Bills (SBs) 296 and 297, sponsored by Sen. Stephanie Chang (D-Detroit) and Sen. Ed McBroom (R-Vulcan), on April 15. This legislation would prohibit hospitals from using mandated overtime for registered nurses in certain circumstances. While the MHA does not support legislation that curtails hospital leaders’ decision-making authority, the MHA worked with bill sponsors and the Michigan Nurses Association to secure key amendments to provide hospitals time to implement potential changes, address extenuating circumstances and provide flexibility to nurses, while keeping patient access at the forefront. The legislation now heads to the House of Representatives for further consideration.

The House Health Policy Committee heard testimony on SB 449450 and 451, as well as House Bills (HB) 5254 and 5255. The bipartisan three-bill Senate package codifies the existence of hospital financial assistance programs (FAPs), creates new reporting requirements on the benefits provided by FAPs and prohibits medical debt from being reported by credit bureaus. The bills, sponsored by Sen. Sarah Anthony (D-Lansing) and Sen. Jonathan Lindsey (R-Coldwater), would:

  • Require hospitals to develop and implement a FAP that provides up to a 100% discount based on a sliding scale for an uninsured patient whose annual income is at or below 350% of the federal poverty guidelines. The FAP must also apply to patients who owe the hospital an unpaid bill equal to or greater than 30% of their annual income.
  • Require hospitals to post information about the FAP on bills, invoices and the hospital website.
  • Require hospitals to submit an annual report to the MDHHS stating the number of applications to the hospital’s FAP and the benefits provided by the FAP each year.
  • Require the state to create a process allowing hospitals to check patient income eligibility.
  • Prohibit consumer reporting agencies from including medical debt in consumer credit reports.

HBs 5254 and 5255, sponsored by Reps. Angela Rigas (R-Alto) and Laurie Pohutsky (D-Livonia), aim to change medical debt collection processes in the state, including restrictions on the sale of medical debt and on interest rates. The MHA maintains a neutral position on SBs 449-451.

The House Health Policy Committee also voted unanimously in support of HBs 5251 and 5252, which provide for the licensing and Medicaid coverage of prescribed pediatric extended care facilities. These facilities would allow specialized care for pediatric patients with complex medical conditions. The MHA continues to review this legislation.

Lastly, HB 5607, which funds the Medicaid and behavioral health portions of the MDHHS for fiscal year 2026-27, was reviewed and approved by its House Appropriations subcommittees on April 16. The bill supports important healthcare measures, including:

  • Full funding for Medicaid.
  • Recognition of hospital provider taxes and the ability to access those funds without additional legislative action or administrative barriers.
  • Specialty Network Access Fee funding.
  • Support for rural and obstetrics stabilization pools.
  • Funding for Maternal Levels of Care verification.
  • $22 million and additional state employees to implement Medicaid work reporting requirements as required by H.R. 1.
  • Language encouraging the state to allocate Rural Health Transformation funds in a timely manner.

The budget proposal also calls for $300 million in unspecified Medicaid savings.  The bill now goes to the full House Appropriations Committee for its consideration. The MHA will continue to work with lawmakers to pass a state budget that fully supports Michigan hospitals, healthcare workers and patients.

Members with questions may contact the MHA advocacy team.

House Budget Threatens Hospitals, Workforce and Patient Access

The budget passed by the Michigan House of Representatives on Aug. 26 includes harmful cuts to hospitals that could jeopardize more than 20,000 jobs, according to the MHA. Estimates released Sept. 3 indicate the cuts could also result in a $4.9 billion loss to Michigan’s economy if House Bill (HB) 4706 is signed into law.

The estimates consider the more than $2.5 billion in potential hospital funding cuts included in HB 4706. The impact on jobs would be particularly profound, as on average, 60% of a hospital’s budget is due to labor. Such a cut could have an additional estimated induced and indirect economic loss of $2.4 billion on the economy. More than one million jobs are directly, indirectly or induced by healthcare in the state.

The proposed House budget includes:

  • New language placing $2.5 billion of hospital provider-tax funded payments in contingency, requiring unnecessary administrative and legislative actions that could jeopardize timely hospital payments.
  • Elimination of at least $100 million of funding from the Specialty Network Access Fee, which provides reimbursement to support physicians caring for patients with Medicaid coverage.
  • Elimination of $10 million to support the Maternal Levels of Care verification for birthing hospitals.
  • No funding to support providers who have not been reimbursed by the Michigan Department of Corrections contractor Wellpath.

Furthermore, Michigan hospitals already stand to lose more than $6 billion over the next 10 years due to federal budget cuts. Further reducing funding that supports delivering healthcare services and the nurses, physicians and other staff employed by hospitals harms Michigan and its more than 10 million residents.

The MHA opposes any and all threats to hospital funding and continues to advocate for a real budget passed by Sept. 30 that supports healthcare and the hospital workforce who serve Michigan communities.

The MHA urges members to contact their lawmakers through an action alert to oppose these harmful cuts to hospital funding and access to care.

Members with additional questions should contact the MHA advocacy team.

House Budget Includes Harmful Hospital Funding Cuts

The Michigan House of Representatives voted 59-45 on Aug. 26 for a state budget that includes harmful cuts to hospital funding and healthcare measures.

This proposed budget includes:

  • New language placing $2.5 billion of hospital provider-tax funded payments in contingency, requiring unnecessary administrative and legislative actions that could jeopardize timely hospital payments.
  • Elimination of at least $100 million of funding from the Specialty Network Access Fee (SNAF), which provides reimbursement to support physicians caring for patients with Medicaid coverage.
  • Elimination of $10 million to support the Maternal Levels of Care verification for birthing hospitals.
  • No funding to support providers who have not been reimbursed by the Michigan Department of Corrections contractor Wellpath.

Furthermore, Michigan hospitals already stand to lose more than $6 billion over the next 10 years due to federal budget cuts. Further reducing funding that supports delivering healthcare services and the nurses, physicians and other staff employed by hospitals harms Michigan and its more than 10 million residents.

The MHA will continue to oppose all threats to hospital funding and work with the state legislature to advocate for a real budget by Sept. 30 that supports healthcare and the hospital workforce who serve Michigan communities.

Following the vote, the MHA issued a media statement from MHA CEO Brian Peters and an action alert encouraging members to contact legislators to protect hospital funding in Michigan.

Members with additional questions should contact the MHA advocacy team.

Governor Signs FY 25 Budget and FY 24 Supplemental

Gov. Whitmer signed the fiscal year (FY) 2025 state budget on July 24. 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 Michigan. 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.

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.

MHA Monday Report July 1, 2024

MHA Board of Trustees Holds Final Meeting of Program Year

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Health & Hospital Association Elects 2024-2025 Officers and Board Members

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Sen. Anthony and Rep. Witwer

Healthcare Advocates Honored with MHA Special Recognition Award

The MHA announced two winners of its Special Recognition Award during the Annual Membership Meeting June 27, recognizing them for extensive contributions to healthcare. Each of the winners has uniquely influenced healthcare in Michigan. The …


Dr. Loren Hamel speaks at the 2018 MHA Annual Meeting.

MHA Meritorious Service Award Recognizes Dr. Hamel

The MHA announced the 2024 winner of its highest achievement award June 27 during the association’s Annual Membership Meeting. Receiving the award for his decades of healthcare leadership is Loren Hamel, MD, president, Corewell Health …


Hospital Executives Recognized for Outstanding Leadership

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Ludwig Community Benefit Award Honors Hospital Programs

The MHA announced the winners of its 2024 Ludwig Community Benefit Award during the association’s Annual Membership Meeting June 27. The honorees include programs supported by Corewell Health William Beaumont Hospital, Royal Oak; Insight Surgical …


Ascension St. John Hospital Receives MHA Advancing Safe Care Award

The MHA announced the winner of its 2024 Advancing Safe Care Award June 27, honoring the dedicated team at Ascension St. John Hospital in Detroit. The award was announced during the association’s Annual Membership Meeting. …


Favorable Federal Court Ruling Allows Hospitals to Continue to Offer Unaltered Public Websites

A United States District Court Judge in Texas issued a ruling June 20 on recent Department of Health and Human Services bulletins that restrict healthcare providers from using standard third-party web technologies that partially …


The Keckley Report

The CBO Health Insurance Status Report: Four Reasons it’s Overly Optimistic

“A close reading of this report suggests its forecast might be overly optimistic. it paints a best-case picture of health insurance coverage that under-estimates the realities of household economics and marketplace trends and over-estimates the value proposition promoted by health insurers to their customers. My conclusion is based on four trends that suggest coverage might slip more than the report suggests …

Thus, no one knows for sure what coverage will be in 2034 as presented in the CBO report. Its analysis appropriately considers medical inflation, population growth and an incremental shift to value-based purchasing in healthcare, but it fails to accommodate highly relevant changes in the capital markets, corporate insurer shareholder interests and voter sentiment.”

Paul Keckley, June 24, 2024


News to Know

  • MHA offices will be closed and no formal meetings will be scheduled July 4 and 5 in honor of Independence Day.
  • Due to the holiday, Monday Report will not be published July 8 and will resume its normal schedule July 15.
  • MHA Endorsed Business Partner ProCredEx will host a free 30-minute webinar for members on July 8 to discuss AI-Assisted Document Transform.

MHA CEO Brian Peters

MHA in the News

The MHA received media coverage the week of June 24 that includes coverage on cybersecurity, market consolidation, 340B and the fiscal year 2025 state budget. MLive published an article June 26 looking at the reason healthcare is the top target for cyberattacks.  …

2025 State Budget Supports Key Healthcare Priorities

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.