The Effect of the Huge federal Medicaid cuts to Michigan Medicaid programs

The Michigan Medicaid program is facing difficult times due to federal budget cuts enacted by the “big beautiful budget act” (BBBA) The official citation is H.R. 1, 114th Cong. (2015-2016). Medicaid spending was cut by $840 billion over a ten year period. The federal Department of Health and Human Services is studying the cuts to be made to individual programs. Those serving seniors include cuts to the community programd of “All-Inclusive Care for the Elderly” (PACE) and”Money Follows the Person.” This sub-program maintains Medicaid coverage so that nursing home residents may transfer from institutional care to in-home care.

Yesterday, April 16, 2026, Michigan Governor Whitmer released Executive Directive 2025-3.
The Medicaid cuts affect 168,000 Michigan seniors. The Governor ordered the Michigan Department of Health and Human Services (MDHHS), the Department that administers the Medicaid program, to produce a report detailing the cuts that will be made to individual programs. The report must cover:
1. The number of Michiganders who could lose health care if the proposed cuts go into effect.
2. The effect of the proposed cuts on hospitals and other relevant service providers, especially in rural and other underserved communities, including reductions in services and closures of facilities.
3. The impact on timely access to care for Michiganders, such as the creation or expansion of healthcare deserts in areas of the state.
4. The ways in which reductions in federal money could impact the state’s budget, including the need for cuts to other vital services.

We will keep a close eye on the proposed cuts to vital programs affecting seniors.