While
making it clear the new proposal is not “Michigan’s Affordable Care Act,”
Senator Roger Kahn (R-Saginaw) released the Senate Workgroup’s Medicaid reform
plan Wednesday, an S-7 draft 3 version of House
Bill 4714, a “Healthy Michigan” plan. The current version of the bill
passed the House of Representatives in June on a 76-31 vote; however, the
Senate left for summer recess without taking a vote on the measure.
The
Senate’s workgroup, led by Senator Kahn, was formed soon after, originally with
six Republicans; however, two Democrats were ultimately added.
Senator
Kahn highlighted the importance of the proposal’s provisions to ensure the
reforms will continue if the State opts-out, if the Affordable Care Act is
repealed, and whether or not two federal waivers are granted. The two waivers
provide a pathway off of Medicaid for able-bodied individuals and provides for
an account for healthcare services costs such as deductibles and co-pays.
Under
the proposal, those on Medicaid with income between 100 and 133 percent of the
poverty level would need to choose between purchasing health insurance with
federal subsidies or continue on Medicaid with 7 percent cost sharing after 48
months.
The
measure also provides for financial incentives for enrollees who improve health
and a cap on what a hospital can charge an enrollee at no more than 115 percent
of the Medicare rate for those with income up to 500 percent of the poverty
level. The House version provided the same, but for those with income up to
only 133 percent of the poverty level.
Finally,
the legislation includes an appropriation to the Department of Corrections and
the Department of Community Health, likely to ensure the measure is
referendum-proof.
The
legislation is expected to have a hearing before the Senate Government
Operations Committee next Tuesday, and reports are that the Senate workgroup
may not all be on the same page with the revised proposal.