May 21, 2004
May 21, 2004
LANSING – Michigan Governor Jennifer M. Granholm today said a federally-proposed $2.2 billion cut to Medicaid would be damaging for more than a million of Michigan’s most vulnerable citizens – collapsing an already fragile and underfunded program.
"The adoption of any proposed cuts to Medicaid would be disastrous for Michigan," Granholm said in a recent letter to Michigan’s entire congressional delegation. "These Medicaid cuts would affect Michigan physicians, hospitals and health systems, nursing homes, and most importantly, low income citizens."
Granholm said the cuts, as called for in a recent House budget resolution, equate to a $160 million cut to Michigan’s Medicaid program. Programs such as Michigan’s home and community based waiver and the entire adult benefits program cost $100 million and $120 million, respectively.
"Cutting Medicaid resources at a time when states and the nation are confronting a particularly difficult situation with the uninsured and those funded by Medicaid would prove very dangerous for our communities," Granholm said. Also, the newly-enacted Medicare prescription drug law will soon begin imposing new Medicaid costs onto states.
The State of Michigan has been aggressive about containing Medicaid costs, but the caseloads in Michigan for the program have increased almost 30 percent since 2001. The state’s rising caseload also has caused a $80 to $120 million hole in the FY 04 budget, she said.
"Our Medicaid dollars provide needed services to 1.36 million Michigan Medicaid beneficiaries, primarily senior citizens, disabled people, pregnant women, and children," Granholm said. "Cuts to this vital program could increase the number of uninsured and negatively impact Michigan families and communities.
Granholm also pointed out that a majority of the nation’s Governors – Republicans and Democrats – are opposed to federal cuts to Medicaid.
"We urge our lawmakers in Washington and the Bush Administration to abandon this approach, restore Medicaid to more appropriate levels, and focus our resources where they belong."
