Michigan health leaders warn that proposed Medicaid funding reductions—from block grants to decreased federal cost-sharing—threaten the state’s behavioral health system. The Michigan League for Public Policy, Community Mental Health Association of Michigan, and Michigan Health and Hospital Association anchor the Protect MI Care coalition of over 140 Michigan organizations mobilizing to prevent cuts.
Medicaid covers more than 2.6 million Michiganders, including one in two children, half of all births, and a majority with serious mental health conditions, intellectual or developmental disabilities, and substance use disorders. It funds residential treatment, outpatient therapy, case management, and peer support. “Removing Medicaid, or significantly reducing Medicaid’s ability to provide these services, will ultimately lead to the termination of people’s behavioral health care services,” said Monique Stanton, MLPP president and CEO.
CMHA CEO Robert Sheehan notes proposed cuts would impact vulnerable members first—those with schizophrenia, bipolar disorder, and opioid use disorder. Mental illness and poverty are closely linked; 97% of CMHA clients live in poverty. MHA warns cuts would reverse gains since the Affordable Care Act, including drops in uncompensated care and increased mental health access. The MHA estimates proposed changes could create a $1.73 billion funding gap.
Governor Gretchen Whitmer issued Executive Directive 2025-3 on April 17, directing the Michigan Department of Health and Human Services to report within 30 days on coverage loss impacts, hospital operations effects—especially rural—and state budget consequences. Whitmer stated: “We’re going to send a clear message to anyone trying to trade your health and someone else’s tax cut. Medicaid is not for sale.”
This article is an AI-assisted summary. All facts and figures are drawn from the original report: https://secondwavemedia.com/proposed-medicaid-cuts-would-destabilize-mental-health-care/