May CREC Indicates a Decline in State Revenue
On May 19, 2023, state economic leaders gathered together for Michigan’s May Consensus Revenue Estimating Conference (CREC). The CREC takes place in January and May every year to discuss independent economic and revenue forecasts that inform decisions made around the state budget.
The overall assessment from Friday’s CREC is that state revenues are trending down, with an estimated decline in state general fund dollars of $989 million for FY 2023 and $1.85 billion for FY 2024. Economists at the CREC stated that this decline is due to slowing economic growth, reductions in the individual tax rate, and timing issues associated with the 2021 adoption of a flow-through entity tax. CREC leaders also cited the impact of tax cuts adopted in 2023 and a shift in consumer behavior to purchasing more services, which are not subject to tax, as also contributing to the state’s revenue decline.
These forecasts provide the foundation for legislators and the Executive Branch to finalize the state’s FY 24 budget. We expect budget target discussions to begin as early as this week and final budget negotiations to continue into June.
New Medicaid Director Announced at MDHHS
Meghan Groen has been selected to head the state’s Medicaid program, effective immediately.
Groen has 20 years of experience in government, policy and nonprofit administration, most recently as senior advisor to DHHS Director Elizabeth Hertel. In addition to her Medicaid Director duties, Meghan will also oversee physical and behavioral health and long-term care and aging programs. Prior to joining MDHHS, Groen served as the deputy policy director and health policy advisor for Governor Gretchen Whitmer.
House Eyes Updates to Healthy Michigan Statute
The House Health Policy Committee heard testimony on bills that would amend Michigan’s Healthy Michigan program, allowing for more flexibility in the program by removing outdated statutory language that has not resulted in cost savings for the state.
Specifically, the bills would eliminate cost-sharing and healthy behavior requirements for beneficiaries which will allow for Medicaid health plans to be more innovative in creating incentives for beneficiaries to engage in healthy behaviors.
The bills are expected to be voted on in the coming weeks by the House Health Policy Committee.
House Health Policy Moves Oral Chemo Parity Legislation
On May 11, 2023, the first testimony-only hearing was held on HB 4071, a bill that would prohibit health insurers from applying financial requirements that are more restrictive on oral chemotherapies than they do for IV chemotherapies. Stakeholders including the Michigan Society of Hematology and Oncology, the American Cancer Society, the Michigan State Medical Society, and Leukemia and Lymphoma Society supported the legislation’s passage and urged the committee to take swift action.
The bill sponsor, Representative Samantha Steckloff [D- Farmington Hills] gave the most powerful testimony, as hers was personal. Representative Steckloff is a breast cancer survivor and champion of oral chemotherapy parity as she herself must take an oral chemotherapy drug. A week after the first testimony-only hearing, House bill 4071 was voted out of the House Health Policy Committee by a vote of 14-3, and now awaits action on the House floor.
MDHHS and DIFS Issue COVID-19 Testing, Vaccine, and Treatment Update
With the Public Health Emergency ending on May 11, 2023, MDHHS and DIFS issued guidance to the public about the future of COVID-19 tests, vaccines and treatments related to cost and accessibility in the state of Michigan.
Both departments reminded individuals that testing and vaccines continue to be available to the public at little to no cost.
For specific information on available testing, vaccines, treatments, and data, please see the following links:
MDHHS Update on End of PHE.
DIFS Update on End of PHE.
MDHHS Releases Title V Block Grant Application
The Michigan Department of Health and Human Services (MDHHS) has asked for public comment on the Title V Maternal and Child Health (MCH) Services Block Grant application. Specifically, this grant provides funding to states to improve the health of mothers, infants and children, including children with special health care needs. Title V state action plans address the priority areas including low-risk cesarean delivery, breastfeeding, infant safe sleep, oral health, lead prevention, mental health, and more. The Title V draft FY 2024 application and FY 2022 annual report are available online. MDHHS welcomes comments on the application by 5 p.m., Friday, June 9. Comments can be submitted to MDHHS-MCHBlockGrant@michigan.gov.
Legislative Coffee Hours
- Rep. Morse 9:30, Oshtemo Charter Twp, Kalamazoo
- Sen. Anthony 10:00, Eaton Rapids City Hall, 200 S. Main St
- Sen. Klinefelt 10:00, Heilmann Recreation Center
- Rep. Miller 11:00, The Owl, Morning ’til Night, 9 W. Main St, Milan
- Sen. Klinefelt 10:00, Roseville, Eastpointe Recreation Authority
- Rep. Fitzgerald 10:00, Location TBD
- Rep. Coffia 9:00, Long Lake Twp Hall, Traverse City
- Rep. Coffia 1:00, Red Door Café, 19631 Maple St, Lake Ann
- Rep. Coffia 3:00, Leelanau County Gvt Center, Suttons Bay
- Sen. Santana 9:00, St. Suzanne Cody Rouge Community Center
- Sen. Santana 11:00, Henry Ford Centennial Library
- Sen. Santana 1:00, 8733 W Vernor Hwy, Detroit
- Sen. Santana 3:00, 24602 Van Born Rd, Dearborn Heights
- Rep. Morse 9:30, Portage Senior Center
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