MPCA is thrilled to announce that early this morning the legislature passed a state budget that includes the most robust appropriation for improvements in Federally Qualified Health Center (FQHC) Medicaid reimbursement since Michigan’s FQHC Prospective Payment System (PPS) was enacted over 20 years ago.
Health Centers are set to see an increase in Medicaid reimbursement of $40 million in FY 2024-25. The $40 million appropriation is unprecedented in Michigan health center reimbursement history and is one of the largest new, ongoing provider investments in the Michigan Department of Health and Human Services budget.
Many health center staff, board members, patients, and other supporters engaged in persistent work to affect this funding increase, and they were successful in partnering with legislators to prioritize the care health centers provide across the state and ensure an understanding of the financial challenges health centers are facing, which if unaddressed would have led to significant negative consequences for patients.
“This is a huge step forward for Michigan Health Centers, and meaningful progress toward addressing challenges with underfunded Medicaid reimbursement rates health centers have been experiencing for years,” said Phillip Bergquist, CEO of the Michigan Primary Care Association. “Countless numbers of individuals contributed to this effort, whether they told the story of health centers and the people they serve with legislators in Lansing or sent an email from their community about the importance of access to care at a health center. This is truly a collective win, and we share in celebrating it with all of our members, patients, and supporters.”
For more on the state budget, access a summary of major budget investments from Governor Gretchen Whitmer or summaries from the legislature’s fiscal agencies.
