Politics & Government

Michigan Senate Votes to Expand Medicaid

State Sen. Vincent Gregory notes failure to give the bill immediate effect threatens the Medicaid expansion.

This story was reported and written by Daniel Lai and Joni Hubred-Golden.

LANSING — After hours of political debate, the state Senate approved a plan late Tuesday to expand Medicaid health care coverage to 470,000 low-income Michigan residents.

But Sen. Vincent Gregory, who represents Farmington and Farmington Hills in the 14th District, said the Senate's failure to give the bill immediate effect could cost Michigan millions of dollars. 

Tuesday's 20-18 vote makes Michigan the 25th state in the country to move forward with Medicaid expansion as part of the federal government's Affordable Care Act. Eight Republicans joined with Democrats to pass the bill.

"The Senate should be commended for approving the Healthy Michigan plan, which will make a difference in the lives of nearly half a million Michiganders along with saving tax dollars and boosting our economy," Gov. Rick Snyder said in a written statement following the vote.

Gregory, a Democrat from Southfield, said he has been calling for Medicaid expansion for almost a year and is glad the bill passed.

“Supporting Medicaid expansion has been about helping real people—our families, neighbors and friends—with real needs, and that’s what those of us who voted to pass this bill today are trying to do," he said. "Unfortunately, this important legislation continues to be held up by partisan rancor, with some Republicans voting against immediate effect today and threatening Medicaid expansion’s ultimate implementation."

The state House of Representatives approved a healthcare expansion plan in June. It is not expected to vote on the Senate's plan until after Labor Day. Because waivers requested by Michigan are expected to take up to 120 days for approval by the federal Centers for Medicare and Medicaid Services, Michigan will miss the Jan. 1, 2014 implementation date. The delay could cost taxpayers $7 million a day in lost funding because the federal money would be sent to other states.

The Medicaid expansion extends benefits to people who fall within 133 percent of the federal poverty level. Benefits will be fully compensated by the federal government through 2017. The federal contribution would drop to 90 percent by 2020.

The bill requires recipients to contribute 5 percent of their out-of-pocket medical costs. After 48 months, the co-pay would increase to 7 percent or the recipient could purchase insurance on the health care exchange. If a person is determined to be “medically frail” — defined as having a chronic disease, mental illness or are unable to complete the daily tasks of life — they would remain at the 5 percent co-pay.

"The Healthy Michigan plan emphasizes personal responsibility. Those covered by the plan will be required to share in the costs through premiums. There also will be incentives for them to take responsibility for their lifestyle choices and to maintain or improve their health," Snyder said.


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