Mobilize to protect Medicaid funding as federal cuts loom and threaten services

By Dennis Archambault

It’s budget planning time at Authority Health and other organizations that provide essential safety-net services. At the same time, the Michigan Legislature is concluding its deliberations on the 2026–27 state budget.

The fiscal storm on the horizon—driven by potential Medicaid funding cuts and a surge of Affordable Care Act beneficiaries losing coverage because of rising premium costs—is cause for serious concern.

The Center for Health Research and Transformation at the University of Michigan has confirmed significant projected losses resulting from federal budget legislation, HR1, commonly known as the “Big Beautiful Bill.” The impact would be felt across Michigan through reductions in Medicaid funding, provider reimbursement, and program administration.

Key findings include:

• Michigan could lose more than $1 billion in Medicaid-related state revenue because of restrictions on provider taxes.
• New limits on state-directed payments could reduce financial support for hospitals and physicians who serve Medicaid patients.
• Work requirements and more frequent eligibility reviews could increase administrative costs while creating new barriers to health coverage.

With nearly 1.7 million Michiganders enrolled in Medicaid, the consequences extend far beyond the state budget. Health care providers, community organizations, and the people who depend on coverage every day would all feel the effects.

The Protect MI Care Coalition has mobilized in response to this impending fiscal challenge. Authority Health has supported the coalition’s efforts and will continue to advocate for Medicaid and other critical social service programs.

The coalition projects that Medicaid cuts could cost Michigan as much as $2.2 billion, a figure that includes the broader network of social programs supported through Medicaid funding. While these reductions may not directly affect Authority Health’s clinical operations, they would have a significant impact on the social determinants of health that influence the well-being of our patients and communities.

Please contact your state representative, state senator, and Governor Whitmer and urge them to fund the Michigan Department of Health and Human Services at a level that reflects the true demands of new federal requirements and protects Michigan’s Medicaid program in the state budget. You can contact them through this link: https://protectmicare.org/take-action/.

Dennis Archambault is vice president of Public Affairs for Authority Health.