Memo from Michigan Department of Insurance and Financial Services (DIFS) details how Republican budget bill would strip Michiganders of their access to affordable health care
Today, with the release of a new memo from DIFS, Governor Gretchen Whitmer highlighted the impact of cuts in the Republican budget bill to the Affordable Care Act (ACA). Their bill, including failure to extend enhanced premium tax credits, would raise Michigan’s uninsured rate and kick more than 120,000 Michiganders off their ACA Marketplace plans. Overall, the Republican budget will result in nearly 11 million Americans losing access to care and the cost of health care increasing for nearly every single person.
“Everyone deserves access to quality, affordable health care regardless of their income or work status,” said Governor Whitmer. “Right now, Republicans in Congress are rushing through dangerous cuts to critical health insurance programs that would threaten access to health care for 11 million people. Their bill would raise our uninsured rate by kick more than 120,000 Michiganders off their ACA plans. I’m grateful to DIFS for highlighting the devastating effect this Republican bill will have on the health of our most vulnerable friends, family, and neighbors while jacking up costs on everyone.”
“In Michigan, we’ve been working hard to get our uninsured rate down and help more Michiganders get care when they get sick,” said Lt. Governor Garlin Gilchrist II. “Republican cuts to health insurance programs will reverse our progress. Today’s memo demonstrates just how dangerous these cuts are for Michigan families and our economy. Governor Whitmer and I are proud of our work to expand affordable, accessible health care for Michiganders, and we will keep fighting to make a difference and build a Michigan where everyone can thrive.”
“DIFS is committed to protecting Michiganders and ensuring they have access to affordable high-quality health insurance,” said DIFS Director Anita Fox. “This proposal would limit health insurance access for Michiganders and raise out-of-pocket costs, jeopardizing Michiganders’ health and financial well-being. If consumers have questions about their health insurance, they can call DIFS at 877-999-6442, Monday through Friday from 8 a.m. to 5 p.m., or visit Michigan.gov/DIFS.”
“These reckless cuts to health insurance will leave families choosing between paying bills and getting care, worsening health outcomes, and driving up costs for everyone,” said Monique Stanton, President and CEO of Michigan League for Public Policy. “Politicians are using misinformation to justify cruel cuts to give tax breaks to the wealthy. Congress must reject these cuts and protect affordable health coverage for Michigan families, seniors, and people with disabilities.”
“Protecting and maintaining access to affordable health care ensures that we, as physicians, can continue to provide timely treatment and preventive services to all our patients, regardless of how they receive their health care,” said Amit Ghose, MD, President of the Michigan State Medical Society. “When fewer people can access quality, affordable health care, everyone will pay more and wait more to access their own.”
“The cuts to health insurance coverage that have been proposed in Congress will not only terminate health insurance coverage for hundreds of thousands of people in Michigan, they will slash the resources healthcare providers have to maintain essential healthcare services and result in reduced care for all patients,” says Phillip Bergquist, CEO of the Michigan Primary Care Association. “These cuts will amplify the healthcare access and workforce challenges we’re already navigating, making our communities less healthy, and we will all pay the price of cutting coverage.”
“All Michiganders deserve access to affordable and quality healthcare where and when they need it,” said Michigan Health & Hospital Association CEO Brian Peters. “These proposed changes will cut healthcare coverage for countless individuals, making Michigan unhealthier and leading to worse outcomes and higher rates of uncompensated care. Increasing healthcare costs and reducing access is a bad deal that Michigan hospitals uniformly oppose.”
Effect on U.S. and Michigan Uninsured Rate
Today, DIFS released a memo highlighting the effect Republican cuts to health insurance programs will have on Michigan’s uninsured rate. Since Governor Whitmer took office, she has worked to make health insurance more accessible and affordable by signing legislation codifying the ACA protections into state law and creating the Healthy Michigan Plan. As a result, Michigan currently has one of the lowest uninsured rates in the country of around 5.4%. The Republican bill could potentially result in 120,000 fewer people with health insurance coverage. Their plan would make qualifying for Marketplace coverage more difficult, removing many of the protections that make enrollment in coverage affordable and accessible. These changes would leave millions without coverage nationwide, increasing the uninsured rate as well as the burden of uncompensated care on the health care system.
Medicaid Expansion and Marketplace Impact
The Republican bill states that individuals who are denied or disenrolled from Medicaid due to work requirements are also ineligible for Premium Tax Credits (PTCs), a policy that helps people cover the costs of their health insurance. This addition will make Marketplace insurance unaffordable for individuals who have lost eligibility for Medicaid and strip them of other coverage options, forcing millions of Americans to become uninsured.
The bill would create a major coverage cliff that would leave Michigan adults at 100-140% of the federal poverty level (FPL) with no affordable health insurance options if they fail to meet Medicaid work requirements—even just once. For example, under this bill, a family of four earning between $32,150 to $45,010 would no longer be eligible for Medicaid nor would they have access to PTCs, leaving them uninsured and, potentially, one hospitalization away from bankruptcy.
Marketplace Access and Cost Increases
The bill does not extend the enhanced premium tax credits that make coverage more affordable for individuals purchasing in the Marketplace. Additionally, the bill rolls back protections that allowed eligible families more flexibility in enrolling for Marketplace insurance, reducing the window from year-round to a single month.
While this bill will hurt poor and vulnerable individuals the most, every single American’s access to affordable health care will be put at risk, regardless of income. By reducing access to affordable health care, this bill will dramatically increase the number of uninsured Americans, with ripple effects that will raise costs throughout the health care system.
More restrictive income and eligibility requirements will especially affect:
- Families with newborns who are waiting for Social Security numbers and birth certificates.
- Individuals experiencing income changes due to life events like marriage or job loss.
- Individuals whose income fluctuates throughout the year.
- The risk pool, as healthier people may choose not to enroll, which would lead to a weaker insurance risk pool.
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Contact your Senators to tell them you oppose these cuts: https://mpca.quorum.us/campaign/ProtectMedicaidFromCuts!/
