Lansing — The U.S. House health care overhaul legislation approved last week could trigger the end of the state’s Healthy Michigan Medicaid expansion program or require legislators to make major changes, the state’s health director said Tuesday.
It would cost the state roughly $800 million a year to continue the low-income insurance plan on its own if federal funding is reduced to the standard matching rate for other Medicaid enrollees, said Michigan Health and Human Services Director Nick Lyon.
“If it becomes more costly for the state, then Healthy Michigan could be terminated,” Lyon said, noting the 2015 Michigan law includes a provision to end the Medicaid expansion if state costs exceed savings. “If you see decreased federal resources in play, then could that trigger actually occur? That’s concerning.”