House Advancing Medicaid Budget Highlights Legislative Work

The Michigan House of Representatives advanced its state fiscal year (FY) 2025 Michigan Department of Health and Human Services (MDHHS) budget recommendations during the week of May 5.

Importantly, the chamber’s budget recommendation continues vital funding for Medicaid, rural and critical access hospitals, obstetrical services and the Healthy Michigan Plan. Supporting Michigan’s Medicaid program will help maintain access to care for underserved populations throughout Michigan. Additionally, the budget proposal includes funding to provide reimbursement for peer recovery coaches in the hospital setting to enhance substance use disorder services. The Senate is expected to advance its FY 25 MDHHS budget recommendation next week.

The House also gave final approval to two MHA supported bills. House Bill (HB) 5096, sponsored by Rep. Kristian Grant (D-Grand Rapids), makes important changes to the state’s Renaissance Zone Act. These changes allow for more local governments to take advantage of the benefits of a renaissance zone designation and increase flexibility around those designations. Renaissance zones support economic development opportunities and allow for important economic drivers, like hospitals, to thrive in a variety of circumstances. Without these alterations, hospitals who may benefit from their locality being designated as a renaissance zone would be unable to realize significant opportunity to maintain or increase access to care in vulnerable communities. The MHA supported this legislation because of the positive impact this could have on Michigan hospitals and health systems. HB 5096 passed the House and is on its way to Gov. Whitmer’s desk to be signed into law.

The House also gave final approval to Senate Bill (SB) 227, sponsored by Sen. Dan Lauwers (R-Brockway). SB 227 will update the state’s child caring institution licensing laws to align with emergency intervention language used in the Mental Health Code. Specifically, this legislation is important to any facility interested in becoming licensed as a Pediatric Residential Treatment Facility and creates additional alignment between the Mental Health Code and the licensing structure for child caring institutions. SB 227 is now headed to the governor’s desk for her signature.

Members with any questions may contact Elizabeth Kutter at the MHA.