LANSING, MI -- The federal government has approved Michigans plan to reform its Medicaid program and expand eligibility to upwards of 400,000 low-income residents using funding available through the Affordable Care Act. Sara Wurfel, a spokesperson for Gov. Rick Snyder, confirmed that the state received a 59-page approval letter from the U.S. Department of Health and Human Services on Monday evening. Ensuring access to health care for hard-working Michiganders will strengthen the health of our states residents and our economy, Snyder said in a released statement. With the approval of the Healthy Michigan Plan, we can move forward to bring coverage to residents, creating a healthier, more productive workforce while saving money for the state’s taxpayers and job providers. The Healthy Michigan plan, as championed by the Republican governor and approved by the Legislature, will allow the state expand Medicaid eligibility to up to 133 percent of the federal poverty level, which is roughly $15,000 for an individual and $34,000 for a family of four. Michigans expansion plan required approval of a federal waiver because of unique reforms, including required co-pays and income-based premiums that recipients can reduce by making healthy lifestyle choices in consultation with a physician. This was a major step, Michigan Department of Community Health Director Jim Haveman told MLive after receiving the approval Monday evening. It gives us the green light to move forward in the next 90 days, which will lead to implementation by April 1. The federal government has pledged to cover the full cost of state-based Medicaid expansion for three years, beginning in January. But Michigan will have to wait three months to implement its plan because the Republican-led Senate did not have the 2/3 majority needed to give the law immediate effect. Legislative leaders ended session a week early this year in hopes of allowing implementation of Healthy Michigan by mid-March, but Haveman said MDCH is not prepared to begin the program until April and is still awaiting action on a supplemental funding bill to fill a budget shortfall created by the Senate delay. Michigan will need to apply for a second federal waiver at some point in order to implement a soft cap on coverage that is called for in the law. After 48 months on Medicaid, new recipients will have the choice to pay higher premiums or seek private insurance on the healthcare.gov website. Medicaid expansion is a key pillar of the Affordable Care Act and was originally required under the law, as signed by President Barack Obama in March of 2010. The U.S. Supreme Court, in a June 2012 ruling, made Medicaid expansion optional. As of December 11, 25 states and the District of Columbia were planning to move forward with expansion in 2014, according to a tally by the Kaiser Family Foundation.
Posted on: Sat, 01 Feb 2014 10:48:30 +0000
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