Updates About Health Insurance

The Michigan Department of Health and Human Services (MDHHS) announced that they will be hosting the Medicaid Health Plan Common Formulary over Zoom on Tuesday, Oct. 27, from 9:30 a.m. to noon. The purpose of the meeting will be to discuss the list of prescription drugs covered under Michigan Medicaid health plans.

During the meeting, the public community partners, and other interested parties will have an opportunity to provide comments on the prescription drug list. The common formulary was created in 2016 to streamline prescription drug coverage policies and ensure consistent coverage across contracted Medicaid health plans.

To view the full press release and how to RSVP for the Zoom call, click here.

The Michigan Department of Health and Human Services (MDHHS) recently announced that they are preparing to implement the federally required Medicaid changes that were passed under H.R. 1. This includes the new work requirements and more frequent eligibility reviews for certain Healthy Michigan Plan (HMP) beneficiaries.

Beginning in January 2027, some HMP enrollees ages 19 to 64 may need to complete approved activities. The list of approved activities includes employment, education, volunteer work, or work programs. Some enrollees can qualify for an exemption to maintain their coverage. The department will be reviewing federal guidance, updating systems, and developing outreach materials to help beneficiaries understand and comply with the new requirements.

The changes will be implemented gradually, and MDHHS has stated that beneficiaries will receive additional information and notices as the transition moves forward.

After a lengthy session day that took place over the course of 30 hours, the Michigan legislature passed a budget for the 2026-2027 (FY 27) Fiscal Year on July 3. Following the passage, significant questions have emerged about the overall spending total of the budget. On paper, the FY 27 budget totals $75.2 billion. However, the budget authorizes $86.4 billion in spending after federal Medicaid taxes and federal K-12 appropriations were shifted into boilerplate and not included in the topline.

The budget reduces Medicaid appropriations by approximately $479.2 million, ($185 million GF/GP), mostly coming from pharmaceutical program restructuring. About $87 million in savings was assumed by using restricted funds, instead of general fund dollars for certain programs.

Much of the 30 hour marathon session was spent voting on legislation unrelated to the budget, likely part of negotiations with fellow lawmakers ahead of campaign season. Before concluding with the budget bills, the Legislature first passed 66 policy bills that were largely uncontroversial. Highlights include establishing a two-year lobbying ban for certain former elected officials and department heads (HB 4062, 4063 and HB 4064), a bill prohibiting large corporate entities who already own 100+ Michigan homes from purchasing more (HB 6074), and legislation requiring Michigan Medicaid to cover evidence-based group prenatal care services (SB 415).

A full list of the legislation passed alongside the FY 27 budget can be viewed here.