Medicaid Expansion and Reform Signed by Governor Snyder
Sept. 16, 2013
On Monday, Sept. 16, Governor Snyder signed the Healthy Michigan Plan into law. The Healthy Michigan Plan expands Medicaid coverage to 133% of the FPL and reforms the Medicaid program. After application of an automatic 5% income disregard, this means that individuals up to 138% of the FPL who are not already eligible for Medicaid will become eligible for the program.
The Medicaid reforms include increased cost-sharing through new health care accounts, healthy behavior incentives and a 48-month time limit on Medicaid eligibility for certain populations. After 48 months, individuals will have the choice of increased Medicaid cost-sharing or private coverage on the Exchange. Some of these reforms will require special approval in the form of a Section 1115 waiver from the federal government before they can be implemented.
The legislation was not given immediate effect, which means that Medicaid expansion will begin on or around April 1, 2014, unless the Legislature adjourns early this year.
In June 2012, the U.S. Supreme Court made the Medicaid expansion optional for states. Michigan is the 24th state to expand Medicaid.
Where can I find more information?
More information about the Healthy Michigan Plan is available here.
The information in this document is based on preliminary review of the national health care reform legislation and is not intended to impart legal advice. The federal government continues to issue guidance on how the provisions of national health reform should be interpreted and applied. The impact of these reforms on individual situations may vary. This overview is intended as an educational tool only and does not replace a more rigorous review of the law’s applicability to individual circumstances and attendant legal counsel and should not be relied upon as legal or compliance advice. As required by US Treasury Regulations, we also inform you that any tax information contained in this communication is not intended to be used and cannot be used by any taxpayer to avoid penalties under the Internal Revenue Code.