Medicaid in Michigan: Why It Matters More Than You Think

(May 21, 20225)  Medicaid is often talked about as a safety net, but in Michigan, it is much more than that. It’s the backbone of healthcare for millions of residents.

  • Medicaid covers 4 out of 10 children in Michigan.
  • 99% of children in foster care are covered by Medicaid.
  • 45% of births in Michigan are covered by Medicaid.
  • Half of the children with special needs in Michigan rely on Medicaid for care.

Federal cuts to Medicaid are being debated now in a variety of forms, but the reality is that even small cuts can have major impacts, reducing provider payments, shrinking mental health services, or adding bureaucratic hurdles that cause kids to push people off coverage. Administrative barriers like complex paperwork and eligibility reviews are already causing eligible families to lose access to vital services.

Proposed cuts to Medicaid are projected to cost the state almost $3B in state GDP, nearly 16,000 jobs directly, and close to 14,000 jobs indirectly.1 This would leave entire regions of the state without access to essential medical services and create economic instability.

If families can’t access care, what happens? Will kids with twisted ankles be forced to walk with lifelong limps? Will parents skip life-altering surgeries for their children because medical debt would drown them? In Michigan, we pride ourselves on caring for more than just ourselves. We care about our communities, too.

Medicaid impacted me and my family when I was growing up. At just two years old, I was diagnosed with Juvenile Diabetes (JD) and I was placed on Children’s Special Health Insurance, which receives its funding through Medicaid. From that moment on, I became intimately familiar with the healthcare system in a way most children don’t. JD is an autoimmune disease that is complex and chronic, and I spent a lot of time visiting doctors and taking trips to the emergency room as a kid. The high blood sugars would make me irritable, lethargic, and sometimes it made me feel like my bones ached. The low blood sugars would sometimes be debilitating and render me helpless until they returned to a normal level. I remember being a kid and seeing my mom struggle with the cost of insulin and appointments, as her income fluctuated based on employment, causing gaps in coverage. I vividly recall being rushed to the hospital for Diabetic Ketoacidosis (a dangerous condition that happens when your body doesn’t have enough insulin and starts breaking down fat too fast, causing acid to be released into the blood; potentially lethal if left untreated), not because of negligence, but because our family simply couldn’t afford the life-saving insulin I needed.

Another memory that sticks with me is fracturing my finger, and my mom jokingly wishing we could hold off on the hospital visit until her new job’s insurance kicked in. It was said with a smile, but it reflected a harsh reality: healthcare decisions were too often driven by finances, rather than medical need.

Is Medicaid perfect? No. It can and should be improved. But it’s the only form of health coverage that nearly one million children in Michigan have. If we allow deep cuts to Medicaid, we aren’t just harming the families who rely on it directly. The ripple effects will spread through our communities, hurting all of us. My life experiences showed me how threatening it can be to live without access to healthcare, and why protecting Medicaid is something we all must stand for.

Medicaid serves many different populations in Michigan, including parents/caregivers, child care providers, relatives in nursing homes, and many kids with complex medical needs. Without Medicaid, the financial stress on these families will rise, impacting communities, schools and the state of our state. Here are some other groups that will be hurt if Medicaid cuts are enacted:

  • Foster Care kids and youth. Children in foster care often move through unstable living situations, but Medicaid provides them consistent access to healthcare services. It is vital for their physical health and mental well-being. Three-quarters of foster kids have at least one physical health problem, 30% have a chronic medical condition and 80% have mental health needs.2 Without Medicaid, many foster families couldn’t afford the extra cost to cover foster kids – and Michigan might lose caring foster and kinship families. Foster youth would lose critical support during some of the most vulnerable periods of their lives.
  • Pregnant People & Childbirth. Nearly half of all births in Michigan are covered by Medicaid. That coverage ensures healthy pregnancies, safe deliveries, and strong starts for newborns. Cutting Medicaid would worsen maternal and infant health outcomes, creating long-term consequences for Michigan families.
  • Schools. Medicaid funds most mental health services for children, with 70% delivered in schools. Without it, schools could lose counselors, nurses, and social workers kids rely on every day.3 It also supports early intervention services that reduce the need for costly special education by 42%, helping children be school ready, rather than starting from a deficit.4
  • Rural Communities & Hospitals. Medicaid funding keeps many rural hospitals’ doors open. Without it, entire towns could lose their only emergency rooms, maternity wards, and basic healthcare services. Residents would be forced to drive long distances for care, putting lives at risk every day. And rural hospitals provide not just care, they’re also typically the largest employers in rural areas and important contributors to rural economies. Without Medicaid, rural hospitals across our state would be forced to eliminate services and, in some cases, shut down5
  • The Economy. Cuts to Medicaid will also put Michigan’s economy in danger. Proposed cuts would cost almost $3B in state GDP and $187M in state and local tax revenue. Almost 30 thousand jobs, in and related to the healthcare system, would be in jeopardy.6

Medicaid is an investment in stronger communities, healthier families, and a more resilient Michigan. The future of our state is rooted in the health of our kids and their families. Kids who don’t have insurance have a much higher risk of growing up into adults with serious health issues. Caretakers who can’t get care for themselves – can’t work and take care of their families. We must continue fighting for Medicaid. Michigan kids and carers need healthcare more than the wealthy need more tax cuts.

Protecting healthcare access for Michigan kids and families is going to take work. We all need to speak up – and not just once. Speak up at local hearings, and at the dinner table with friends and family. Stay informed – here are some sources I recommend:

Send an email to your legislators – every week! Sign up for our bi-weekly bulletin and we’ll email you online advocacy campaigns that you can send to your legislators.

This is not just about numbers or policy. Medicaid’s reach impacts every corner of our state. It affects our neighbors, our economy, and our future. I want to challenge you to think of Medicaid as more than just a healthcare program for “other people.”

Jobs are at stake. Futures are at stake. Lives are at stake.

Because in Michigan, we don’t just look out for ourselves. We look out for each other.

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  1. https://www.commonwealthfund.org/sites/default/files/2025-03/Ku_impact_medicaid_snap_cuts_Tables.pdf
  2. https://ccf.georgetown.edu/2025/02/13/how-medicaid-supports-parents-in-crisis-children-in-or-aging-out-of-foster-care-relative-caregivers-and-adoptive-families/#fe149fa9-2e7d-4338-aaa5-f749f71396b7
  3. https://nashp.org/michigans-caring-for-students-program-leverages-medicaid-funding-to-expand-school-behavioral-health-services
  4. https://www.ffyf.org/wp-content/uploads/2024/07/2024-Michigan-State-Fact-Sheet.pdf
  5. https://chqpr.org/downloads/Rural_Hospitals_at_Risk_of_Closing.pdf
  6. https://www.commonwealthfund.org/sites/default/files/2025-03/Ku_impact_medicaid_snap_cuts_Tables.pdf