MI House Republicans Announce Medicaid Reforms

Key pillars involve reforms, better coverage for more people and savings for taxpayers

Michigan House Republicans today announced an innovative plan to reform the state’s Medicaid program that will provide more personal control over health-care options for enrollees.

House Bill 4714 proposes a series of statutory changes to Michigan Medicaid. Once the legislation is approved, the proposals will be submitted by the Michigan Department of Community Health (DCH) to the federal government in the form of Medicaid waiver requests. These requests must be approved at the federal level before any money can be used for Medicaid.

“Our plan rejects the calls for an expansion of a failed federal program that has shown time and time again that it does not work well,” said Rep. Al Pscholka, R-Stevensville. “Instead of expanding an open-ended federal entitlement, we found a way to reform the system and cover more people with better coverage, all at a cost savings to Michigan taxpayers. This plan will help Michigan residents become healthier, and it won’t leave taxpayers on the hook down the road.”

The reform plan includes five main pillars:

1. More individual control over health care plans;
2. Personal responsibility through health savings accounts;
3. Healthy living incentives to help address causes and not symptoms;
4. More options for free-market delivery;
5. State taxpayer protection through “Cancellation” clauses.

“This plan is the culmination of many months of hard work and dedication,” said Rep. Matt Lori, R- Constantine. “We have taken the best ideas from the best-performing plans around the country, and added some of our own reforms to make this the most efficient and responsible plan out there. This plan puts healthcare into the hands of Michigan residents, not bureaucrats in Washington, D.C.”

Rather than extend the broken status quo, Michigan Republican lawmakers sought to improve the current system and create healthier outcomes. The purpose of the Michigan Medicaid system is not to simply enroll more people, but to help our most vulnerable and create an effective, temporary safety net to help able-bodied adults through hard times.

“Through this reform, we are seeking to help more children, seniors and disabled Michiganders. However, we don’t want to trap people in government programs. When it comes to able-bodied adults, government assistance is not an entitlement nor should it be a lifestyle. It should, instead, be a temporary hand up,” said Speaker Jase Bolger, R-Marshall. “We have put strong incentives in this plan to help people achieve real, long-term solutions to becoming healthier. This is about people and their health, not statistics and numbers.”

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