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Tens of thousands of rural Michiganders are at risk of losing their healthcare coverage—and their local hospital—under a Republican-led budget plan that would cut Medicaid funding.
MICHIGAN—Michiganders living in rural communities, as well as the hospitals that serve them, would likely bear the brunt of the damage caused by proposed federal funding cuts to Medicaid that were recently approved by Republican lawmakers in the US House of Representatives.
That’s because cuts to Medicaid would disproportionately affect rural communities, where nearly one in four residents rely on the program, including 47% of births and most nursing home patients, according to new reporting from Stateline. And because rural hospitals would stand to lose a significant chunk of their revenue, they could face service reductions—or even closures.
It’s a warning that has been echoed by healthcare leaders, politicians, and advocacy groups from across the state in recent weeks—including by Gov. Gretchen Whitmer during a roundtable discussion last week with a group of physicians at CS Mott Children’s Hospital in Ann Arbor.
@gandernewsroom US House Republicans are considering the largest Medicaid cut in history—which would force rural hospitals across Michigan to close, according to Gov. Gretchen Whitmer. “So much of the progress that we’ve made is at risk,” Whitmer said this week.
“Medicaid is crucial to rural and small towns across Michigan,” Whitmer said. “We know that local hospitals are often the largest employers in rural communities—and now they are very much at risk. If the $880 billion Medicaid cut is passed, we will lose thousands of those jobs.”
What’s at stake?
Republicans in the US House narrowly passed a new budget framework last month that demands nearly $880 billion in spending cuts from the committee that’s responsible for overseeing federal health care spending, including through the Medicaid program.
And while President Donald Trump and Republican leaders insist Medicaid isn’t being explicitly targeted for cuts, the proposed funding changes, given their scale, would almost certainly impact millions of Americans who rely on the program—including nearly 3 million Michiganders.
The House plan, which passed 217-215 with only one Republican in opposition, seeks to slash federal spending in order to help fund $4.5 trillion in tax cuts that largely benefit the wealthy.
As negotiations over the legislation continue between the House and Republican-controlled Senate, lawmakers in both chambers will need to determine exactly where those savings will come from—setting up a lengthy battle over the future of key social programs like Medicaid.
@gandernewsroom US Rep. Debbie Dingell is warning that the US House Republicans’ proposed Medicaid cuts would put millions of Americans at risk—all to fund tax cuts for big corporations and the wealthy. “People will die. They will die because they will not get the care that they need,” she said.
More than 2.6 million Michiganders rely on Medicaid, including nearly 1 million children. The program also funds nearly 40% of births statewide, federal data shows. Cuts to Medicaid could directly affect Michiganders’ ability to afford doctor’s visits, prescriptions, or even long-term care.
“Let’s be really clear: If Republicans force tens of millions of Americans off Medicaid, people will die,” US Rep. Debbie Dingell (D-Ann Arbor) said last week. “They will die because they will not get the care that they need. And many families are going to be left bankrupt.”
How would this impact rural Michigan?
Rural Michiganders rely on Medicaid more than most, reports show.
An analysis from the Joint Economic Committee, one of the four standing joint committees of the US Congress, found that about 830,000 Michiganders would be at risk of losing their health care coverage under the Republican plan—including 120,000 rural Michiganders and one in five seniors who could be forced out of nursing home care.
New reporting from Stateline also shows that rural hospitals and primary care physicians’ incomes would likely go down if Medicaid patients are no longer able to afford the same level of health care—potentially leading to reductions in services offered for everyone or even closures.
Michigan’s rural areas have already seen hospitals close their doors at higher rates than facilities in non-rural areas. And experts say losing income from Medicaid patients would only exacerbate the issue and could lead to a “domino effect” of more hospital closures.
“It’s just going to make things that are already a challenge even more challenging for rural communities,” Whitney Zahnd, an assistant professor at the University of Iowa, told Stateline.
As an example, Whitmer said that the federal funding cuts would likely result in rural hospitals closing their labor and delivery units, “forcing people to drive hours just to have a baby.”
“People will get hurt because these cuts simply go too far, too fast,” Whitmer said. “This isn’t just about a population who gets their insurance through Medicaid. It’s about every one of us. It’s about our workforce. It is about our economy. It is about business and health care for people.”
Who voted for this?
All seven of the Republican US representatives from Michigan voted in favor of the recent House budget resolution to cut Medicaid funding—including US Reps. John James, Tom Barrett, Jack Bergman, Bill Huizenga, Lisa McClain, John Moolenaar, and Tim Walberg.
These lawmakers are now facing sharp backlash from health care advocates across Michigan, who have warned that reducing Medicaid funding could put a strain on hospitals, increase costs for working families, and leave thousands of Michiganders without critical coverage.
@gandernewsroom During a roundtable discussion in Ann Arbor this week, Archie Drake, the CEO of Children’s Hospital of Michigan, told Gov. Gretchen Whitmer and US Rep. Debbie Dingell that Republicans’ proposed Medicaid cuts would be “devastating” for hospitals statewide. “We’re going to pay for it one way or the other,” Drake said.
Munson Healthcare—one of the largest employers in Bergman’s district that serves about 75,000 patients on Medicaid—has also warned that federal funding cuts would threaten the stability of local hospitals and imperil health care for the region’s most vulnerable residents.
“Protecting Medicaid is vital to ensuring that all our neighbors across northern Michigan can receive the care they need while preserving jobs and sustaining our local economy and communities,” Munson Healthcare CEO Ed Ness said in a recent press release.
Amid the pushback, several Republican lawmakers—including Barrett, Bergman, and James— have been canceling in-person town halls and avoiding face-to-face meetings with voters.
What’s next?
The funding cuts are far from final.
Senate Republicans have also put forward their own funding plan, which differs from the House version—meaning more negotiations will be required before a final package can take shape.
@gandernewsroom Gov. Gretchen Whitmer says the US House Republicans’ proposed budget would cut Medicaid and strip healthcare from 15 million Americans—including more than 2.3 million Michiganders. That also includes more than 300,000 people with disabilities and 168,000 seniors, Whitmer said. “People will get hurt because these cuts simply go too far, too fast,” she said.
Meanwhile, Democrats like Whitmer and Dingell are actively urging Michiganders to keep contacting their state and federal lawmakers to oppose any Medicaid funding reductions.
“I encourage everyone who has a story to tell, to be telling it,” Whitmer said. “That’s the way that we have the best shot of changing the trajectory. Is by raising our voices together and making sure every person understands the personal impact that we’re all going to suffer from this.”
READ MORE: Michigan Republicans back plan that puts Medicaid on the chopping block
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