State Legislative Weekly Recap: Executive Budget Recommendations, Nurse Mandatory Overtime Testimony

The House and Senate Appropriations Committee held a joint hearing for Gov. Whitmer’s executive budget recommendation for fiscal year (FY) 2027, and the Senate Regulatory Affairs Committee heard testimony on nurse mandatory overtime legislation during the week of Feb. 9.

State Budget Director Jen Flood presented Feb. 11 Gov. Whitmer’s executive budget recommendation, which includes full funding for Medicaid and hospitals. The recommendation totals $88.1 billion, including $13.6 billion from the state general fund. The Michigan Department of Health and Human Services budget accounts for $41 billion of total state spending.

The budget responds to federal changes following the passage of H.R. 1 last year. The proposal recommends hiring 589 new full-time employees to implement Medicaid work requirements. The state estimates 200,000 Michiganders could lose Medicaid coverage in FY 27 due to work requirements and redeterminations.

The proposal also calls for $804.4 million in new revenue from taxes and assessments that would be deposited into the Medicaid Benefits Trust Fund for Medicaid programs and services, including:

  • $327 million from new taxes on tobacco and vape products.
  • $282 million from a new digital advertising tax.
  • $195.4 million from online gambling and casino taxes.

Outside of healthcare, the budget calls for new investments in programs such as third grade reading and property tax credits for seniors.

MHA CEO Brian Peters released a media statement that reiterates the importance of the governor and legislative leaders passing a budget that protects Medicaid and hospitals. The association will work closely with legislative leadership moving forward to ensure MHA priorities are fully funded.

The Senate Regulatory Affairs Committee heard testimony on Senate Bills 296 and 297, sponsored by Sen. Stephanie Chang (D-Detroit) and Sen. Ed McBroom (R-Vulcan), which would prohibit mandatory hospital overtime in certain circumstances. The bills would establish arbitrary one-size-fits-all staffing requirements that may limit patient-focused clinical decision-making, and individual team-based approaches should be prioritized. The MHA does not support legislation that curtails hospital leaders’ decision-making authority and instead supports empowering local healthcare professionals to make decisions that best serve patients and reflect clinical expertise. The MHA will continue to monitor the legislation and work with lawmakers and healthcare stakeholders to ensure that care teams have the tools they need and that Michiganders maintain access to timely, high-quality care.

Members with questions may contact the MHA advocacy team.

Michigan Health & Hospital Association Reacts to Executive Budget Recommendations

The following statement can be attributed to Brian Peters, CEO of the Michigan Health & Hospital Association.

While we are still reviewing the proposed executive budget, we are encouraged to hear that access to affordable healthcare is a top priority for Gov. Whitmer. We look forward to working alongside the governor and legislative leaders to ensure the 2027 budget mirrors the commitment they made in last year’s budget to fully fund Medicaid. Because of their actions, 1 in 4 Michiganders kept their health insurance through Medicaid, while many others maintained access to important healthcare services with state funding, such as the rural access pool and obstetrical stabilization fund.

MHA Releases FAQ on Rural Health Transformation Program Funding

The MHA recently released a new frequently asked questions (FAQ) document to help members better understand allowable uses, limitations and compliance requirements related to Michigan’s Rural Health Transformation Program (RHTP).

The FAQ clarifies that RHTP funding is temporary and intended to support specific care transformation activities. Funds cannot be used to cover routine operating costs, financial losses or to replace existing funding. Repayment may be required if funds are used for purposes not approved or if required documentation and reporting are not completed.

The document also addresses common questions raised by hospitals, including the use of RHTP funds for provider payments, health information technology investments, electronic medical record upgrades and limited facility improvements. In all cases, expenses must be directly connected to transformation activities approved by the Centers for Medicare & Medicaid Services (CMS).

Additional RHTP information and resources are available on the MHA’s Rural Health Transformation Program webpage. The MHA will continue to update both the FAQ and the webpage as more guidance becomes available from the Michigan Department of Health and Human Services and CMS.

Members with questions may contact Lauren LaPine-Ray at the MHA.

MHA Shares Recent Medicare and Medicaid Enrollment Analysis

The MHA recently updated its analysis of Medicaid and Medicare enrollment based on December 2025 data. The analysis includes program enrollment as a percentage of each county’s total population and the split between fee-for-service and managed care organization . Just over 25% of Michigan’s total population is enrolled in Medicaid and 23% is enrolled in Medicare.

Roughly two-thirds of Michigan’s 2.5 million Medicaid beneficiaries are enrolled in one of nine managed care plans.

Total Medicare enrollment is 2.3 million, with 63% of beneficiaries enrolled in a Medicaid Advantage (MA) plan and only two counties having less than 50% of total Medicare enrollment in MA plans. MA enrollment by county ranges from 47% to 79%, with 71 counties having 55% or more of their Medicare population enrolled in an MA plan, as highlighted below.

 

 

 

 

 

 

December enrollment is spread across 45 MA plans, with up to 29 covering beneficiaries in several Michigan counties and a minimum of five plans available in each county.

Members with enrollment questions should contact the MHA health finance team.

MHA Monday Report Jan. 12, 2026

MHA Healthcare Leadership Academy Applications Due Feb. 6

The enrollment deadline for the MHA Healthcare Leadership Academy is Feb. 6. The cohort meets Feb. 25-27 and May 7-8 at the MHA headquarters in Okemos. HCLA, in partnership with Executive Core, has been …


MHA Joins Coalition Letter Opposing Federal Redefinition of Professional Degrees

The MHA joined a statewide coalition in signing a letter to Michigan’s congressional delegation expressing concern about a proposed federal change that would remove several health professions, including nursing and behavioral health fields, from the …


Webinar to Highlight Effective Cyber Incident Response

MHA Endorsed Business Partner CyberForce|Q is hosting the webinar Proactive Cyber Risk Measures from 11 a.m. to noon ET on Jan. 29. The session will feature speakers from Trinity Health, the Michigan State Cyber …


MHA Rounds image of Brian PetersMHA CEO Report — 2026, A Pivotal Year for Healthcare

As we look toward the year ahead, one thing is clear: healthcare will remain at the forefront of public debate. We’ve seen time and again how healthcare delivery is shaped by policy decisions. …


Keckley Report

Healthcare 2026: Three Realities

“Congress returns to DC this week to debate the merits of extending the advanced premium tax credits that enable coverage for 4 million in a climate of high anxiety about U.S. intervention in Venezuela and heightened tension with Russia and China.

Each sector in healthcare—hospitals, physician services, long-term care, insurers, life science manufacturers, enablers and advisors—is vulnerable. None welcomes unflattering attention and all spend heavily on messaging and advocacy to protect themselves.  All recognize the elephant in the room—large employers that have patiently funded the system’s profitability and value protective regulation that limit disruption. And in all, implementation of AI solutions that lower operating costs and streamline performance is THE immediate priority.

The realities of 2026 for healthcare are foreboding: business as usual is not an option.”

Paul Keckley, Jan. 4, 2026


MHA in the News

The MHA received media coverage during the week of Jan. 5, covering the increasing rate of flu-related hospitalizations in Michigan. Both Bridge and Michigan Public published stories during the week based on interviews with Jim …

MHA CEO Report — Streamlining Medicaid Work Requirements

MHA Rounds image of Brian Peters

“Alone we can do so little, together we can do so much.” — Helen Keller

MHA Rounds image of Brian PetersAs states work toward establishing Medicaid work requirements that are a core element of H.R. 1, it’s more important than ever that we reduce the administrative burden associated with verification for beneficiaries. Medicaid work requirements aim to advance accountability, but if not implemented correctly, they can increase costs for everyone and remove safety nets for those who need it most.

When reporting systems are confusing or overly complex, individuals that satisfy the requirements can still lose coverage simply because they can’t navigate the paperwork. When qualified individuals go without coverage, they tend to delay seeking care until a problem has worsened unnecessarily; at the same time, hospitals end up managing more uncompensated care. And when more people go uninsured, healthcare costs rise, affecting affordability for everyone.

The solution lies in intentional implementation. Michigan can successfully streamline the verification process by automating data sharing across agencies, offering multiple reporting options and communicating requirements clearly. In short, we need to follow the lead of some of the most successful and innovative companies in the private sector, such as Amazon and Uber, and make this process as user-friendly as possible.

By focusing on efficiency and simplicity, Michigan can protect taxpayer dollars, support employment and keep healthcare more affordable with an effective Medicaid work requirement program. The MHA is committed to working closely with all parties toward this goal.

As always, I welcome your thoughts.

Speech-Language Pathologist Medicaid Coverage and Critical Incident Stress Management Services Legislation Advances

Legislation improving coverage policies for speech-language pathologists (SLPs) and broadening those included under Critical Incident Stress Management (CISM) services advanced in the Michigan House of Representatives during the week of Oct. 20.

House Bill (HB) 4484, introduced by Rep. Joe Fox (R-Fremont), amends the Social Welfare Act to allow Michigan-licensed SLPs to seek Medicaid reimbursement for audiological rehabilitation and speech-language therapy services. SLPs could seek reimbursement for services regardless of having a certificate of clinical competence and regardless of any Department of Health and Human Services rules or regulations surrounding the issue. The bill passed out of the Michigan House 102-0 on Oct. 22. The MHA-supported bill now heads to the Senate for further consideration.

HB 4857, introduced by Rep. Will Bruck (R-Erie), expands the scope of confidentiality and liability provisions related to CISM services to any individual, rather than just emergency service providers. CISM services means services provided by a CISM team or team member to individuals affected by a critical incident or series of incidents to help manage or reduce stress-related responses. Some of the services provided include critical incident stress debriefings, on-scene support services, consultation and referral services. The MHA supports the legislation, which was unanimously approved by members of the House Health Policy Committee on Oct. 22.

Members with questions may contact the MHA advocacy team.

MHA Shares Recent Medicare and Medicaid Enrollment Analysis

The MHA recently updated its analysis of Medicaid and Medicare enrollment based on September 2025 data. The analysis includes program enrollment as a percentage of each county’s total population and the split between fee-for-service and managed care organizations. Just over 26% of Michigan’s total population is enrolled in Medicaid and 23% is enrolled in Medicare.

Roughly two-thirds of Michigan’s 2.6 million Medicaid beneficiaries are enrolled in one of nine managed care plans.

Total Medicare enrollment is 2.28 million with 63% of beneficiaries enrolled in a Medicaid Advantage (MA) plan with only two counties having less than 50% of total Medicare enrollment in MA plans. MA enrollment by county ranges from 46% to 79%, with 73 counties having 55% or more of their Medicare population enrolled in an MA plan as highlighted below.

 

 

 

 

 

 

 

 

September enrollment is spread across 45 MA plans with up to 29 plans covering beneficiaries in several Michigan counties, with a minimum of five plans available in each county.

Members with enrollment questions should contact the health finance team at the MHA.

MHA Supports Expanded Medicaid Coverage for Postpartum Mental Health Screenings

The MHA recently submitted comments to the Michigan Department of Health and Human Services in support of the proposal to expand Medicaid coverage for maternal mental health screenings up to 12 months postpartum.

Postpartum depression affects one in eight individuals, with symptoms often appearing months after childbirth. At nine to 10 months postpartum, 7.2% of individuals report depressive symptoms, many for the first time, highlighting the need for extended screening.

The MHA noted the importance of using validated tools like the Edinburgh Postnatal Depression Scale and aligning with recommendations from national medical organizations will help identify and treat more cases of postpartum depression. Extending coverage will close care gaps, improve outcomes for families and strengthen maternal and infant health statewide.

Members with questions may contact Lenise Freeman at the MHA.

MHA CEO Report — Patients Over Politics

MHA Rounds image of Brian Peters

MHA Rounds graphic of Brian Peters“Happy are those who dare courageously to defend what they love.”  — Ovid

Most people will find themselves in a hospital at one point or another, whether it’s to hold a loved one’s hand, welcome a child or receive needed – perhaps even life-saving – care.

I’m no exception. Like many others have done before and since, my wife and I looked to the team at Corewell Health Devos Children’s Hospital to keep our daughter safe and healthy while she was fighting for her life in their neonatal intensive care unit some 19 years ago (a story I recently shared on the MiCare Champion Cast). Needless to say, it’s in those moments that we realize just how personal – and non-partisan – healthcare truly is.

As an association, it’s our job to protect Michigan hospitals and safeguard healthcare services for patients and communities. That’s why in recent months we’ve spoken out against attacks to Medicaid – and why now – we’re ringing the alarm on the devastating impact proposed House budget cuts would have if signed into law.

Political posturing aside, here are the facts: Michigan hospitals stand to lose more than $2.5 billion under House Bill 4706, which would directly impact patient access to care in hospital beds, labor and delivery units, emergency departments, cancer treatment and many other vital service lines across the state. As we stated repeatedly during the debate on “One Big Beautiful Bill Act (OBBBA),” when service lines and hospitals close, access is not only lost for Medicaid recipients – it is lost for everyone.  In addition, this funding keeps our incredibly dedicated healthcare workers employed. The House-proposed budget puts more than 20,000 Michigan hospital jobs at risk and could result in a $4.9 billion loss to the state’s economy.

While some politicians point fingers, Michigan hospitals are focused on patients. It’s time to put egos aside and act as a united front when it comes to protecting access to care, helping our communities thrive and showing up for those who care for us all in times of joy, uncertainty and crisis.

We cannot let partisanship put lives at risk. On behalf of our MHA family, I ask you to show courage in speaking truth to power. I ask you to join me in urging lawmakers on both sides of the aisle to protect essential hospital funding by visiting our MHA Legislative Action Center.

As always, I welcome your thoughts.