LANSING — Governor Gretchen Whitmer released a report that showed the devastating impacts of Medicaid cuts in the Republican budget plan. The plan from U.S. Congressional Republicans in Congress announced a plan to cut $880 billion from Medicaid, so they can deliver a $4 trillion tax cut that would primarily benefit the rich. If passed, this would be the largest cut to Medicaid in its 60-year history. Nationwide, millions would lose access to health care and the cost of health care will go up for every single American.
The report was in response to to Executive Directive 2025-3 from Gov. Gretchen Whitmer, which directed MDHHS to identify the potential impact Republican-proposed cuts to Medicaid would have on Michiganders’ health.
According to the report, the cuts would devastate Michigan’s nursing homes and hurt seniors:
Medicaid & Seniors
Medicaid covers 168,000 seniors, ensuring they have access to the critical care, prescription drugs, and medical procedures they need to stay safe and healthy. Michigan’s nursing homes receive over $3 billion in Medicaid funding per year, and three in five nursing room residents are on Medicaid. Proposed cuts would gut at least $325 million in funding directly from Michigan nursing homes.
Home and Community Based Services (HCBS) providers—who support vulnerable seniors and persons with disabilities living in the community—receive more than $1.5 billion in Medicaid dollars each year. The services they provide range from personal care and counseling to elder abuse prevention, energy assistance, and transportation.
“Medicaid provides a lifeline to 2.6 million Michiganders, including 168,000 seniors and three in five nursing home residents,” said Governor Whitmer. “Deep cuts to Medicaid would terminate health care for 750,000 of our friends, neighbors, and families. They will lead to our seniors going without care and getting sicker for no reason. They deserve to enjoy their golden years without worrying about whether or not they can see an eye doctor for glasses, access critical prescription drugs, or home meal delivery. Let’s keep advocating for home and community-based providers who do incredibly valuable, often thankless work in communities across Michigan, caring for vulnerable seniors and people living with disabilities.”
“Medicaid makes a difference for seniors in every corner of Michigan, from rural towns in the U.P. to downtown Detroit,” said Lt. Governor Garlin Gilchrist II. “Cutting Medicaid will terminate care for vulnerable seniors who rely on Medicaid to pay for nursing home care and access Home and Community Based Services. These unacceptable cuts will make people sicker and impact families and caregivers who already work so hard to care for their loved ones. We’ll stand tall to protect Michigan seniors and ensure Michigan can continue to be the best place to retire.”
“The Medicaid cuts being considered by Congress would create a $2 billion hole in the state’s budget that we cannot afford to fill,” State Budget Director Jen Flood said. “What Congress is proposing would mean painful cuts to seniors’ access to health care, public safety, education and services for veterans.”
“The data released by Governor Whitmer today confirms what health care advocates have been warning for months—Medicaid cuts of this magnitude would devastate Michigan’s seniors,” said Monique Stanton, President and CEO of the Michigan League for Public Policy. “Stripping $325 million from nursing homes and slashing community-based services would force vulnerable older adults out of the care they rely on and into crisis. The MDHHS report makes it painfully clear: these cuts aren’t just numbers on a page—they represent real harm to real people across our state. We urge Congress to reject these dangerous proposals and protect the care that keeps Michigan’s seniors safe, healthy, and independent.”
“Cutting Medicaid is an all-out assault on working families that will hurt all of us – especially children, seniors and those most vulnerable. Cuts will mean less jobs for our nurses who care for our communities, public safety officers who keep our neighborhoods safer, school workers who educate our children and so much more, said Gino Carbenia, Executive Director of AFSCME Michigan. “These cuts will not only be devastating for our members, but also the communities we work in.”
“As a Medicaid-funded nursing home, we rely on that funding to support and care for our residents,” said Sharon Fowler, CNA at Nexcare Lakepointe in Clinton Township. “We already struggle with short-staffing, and cuts would further challenge the care we can provide. Imagine it’s your grandparent, sibling, mother, or child. In a severe short-staffing situation, we would have to rush to feed, clean, bathe, and see to their medical concerns. Cuts to Medicaid would lead to a catastrophic situation. It will create layoffs and at worst could lead to the closing of care facilities. We cannot let that happen. ”
The report also lays out the importance of Medicaid in supporting Michigan’s economy:
Medicaid’s Role in Supporting Michigan’s Economy
Medicaid plays a key role in supporting the health of Michigan’s economy. Michigan’s health care industry has a total economic impact of $77 billion per year: greater than any other industry in the state. Medicaid expansion alone sparked the creation of more than 30,000 new jobs. These jobs boost the personal spending power for Michigan residents by about $2.3 billion each year, resulting in an estimated $150 million in tax revenue annually.
If Republicans succeed, Michigan hospitals could lose out on half a billion dollars in Medicaid funding annually, threatening thousands of jobs. As a result, hospitals in local and rural communities across Michigan will close, threatening access to care, raising prices, and forcing people to drive further for health care. This could drive Michiganders out of our state, reducing our population growth and crippling our economy.
Polling Show Support for Medicaid, Opposition to Cuts
A poll by EPIC/MRA showed that there is only 11 percent support for cuts to the vital program. Specifically,
29% Increase spending on Medicaid
11% Decrease spending on Medicaid
54% Keep spending on Medicaid about the same
6% Undecided/Refused
Another question shows that cuts so that tax giveaways can be given to the most wealthy has even less support:
Do you support or oppose cutting Medicaid spending to pay for tax cuts?
4% Strongly support
5% Somewhat support
9% TOTAL SUPPORT
82% TOTAL OPPOSE
15% Somewhat oppose
67% Strongly oppose
9% Undecided/Refused
