As the CEOs of three major health systems in Michigan, we support Governor Snyder’s Healthy Michigan Plan that strives to improve and strengthen our state’s Medicaid program and offer health insurance to low-income working adults.
Failing to accept federal support to provide health insurance to an estimated 450,000 working Michigan adults – including many veterans – will have serious consequences to our local economy. Michigan will forgo about $2.1 billion in economic activity and an estimated 18,000 new jobs generated by the additional federal dollars coming into the state’s health care system.
Business leaders across Michigan — including the Michigan Chamber of Commerce, Small Business Association of Michigan and the Detroit Regional Chamber– are quick to point out that Medicaid reform can help slow the increase in health insurance premiums paid by Michigan employers, by reducing the burden of uncompensated care currently borne by Michigan hospitals. According to some estimates, this cost-shift has imposed a hidden tax of about $1,000 per family through higher health insurance premiums.
Some have suggested that the state cannot afford to enhance Medicaid. Yet this argument is not supported by several reports. They conclude that, with matching federal dollars, the curbing of cost-shifting, and the resulting healthier workforce, Michigan would actually save money by strengthening Medicaid. Adopting the Governor’s plan would also address the untreated health issues faced by Michiganders who are currently uninsured, putting patients and their families on a healthier course.
Today’s Medicaid program is not perfect. The historical challenges posed by health care provider reimbursement and primary care access will not evaporate overnight, though in a recent report most providers indicated their willingness to take on newly covered patients. Saint Joseph Mercy Health System, University of Michigan Health System and St. John Providence Health System have the resources and willingness to care for Medicaid patients.
By embracing the opportunity to enhance Michigan’s Medicaid program, we can improve health outcomes and program sustainability while creating efficiencies that will enable us to cover more of our citizens.
Our hospitals and clinical staff have a long history of treating the uninsured and underinsured in Southeast Michigan. While not the easy thing to do, it is the right thing to do.
But we cannot solve the problems of the uninsured and underinsured on our own. Legislators have a unique opportunity to provide additional access to health care services for these vulnerable populations, relieve our businesses of some of the burden of cost-shifting, create new jobs and save our state precious tax dollars.
To those who argue we cannot afford to support Governor Snyder’s plan, we say: We cannot afford not to support the Healthy Michigan Plan.
Jean Meyer, Interim President & CEO, St. John Providence Health System; Garry Faja, President & CEO, Saint Joseph Mercy Health System; Ora Pescovitz, CEO, University of Michigan Health System
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