Michigan healthcare providers are decrying cuts to Medicaid included in an executive order delivered by Gov. Jennifer Granholms budget director that outlines $304 million in midyear spending reductions. The Michigan Health & Hospital Association said a requested 4% cut to Medicaid reimbursement rates would reduce payments by $53 millionincluding the lost federal matching dollarsin order to save the state $16 million.
Mich. providers decry state cuts to healthcare
The state government faces a worsening budget deficit as the automotive industry sputters and revenue fails to hit the numbers projected in the fiscal 2009 budget, which ends Sept. 30. Budget Director Bob Emerson told a joint session of the House and Senate appropriations committees that Granholm intends to use proceeds from the American Recovery and Reinvestment Act to make up the difference between the cuts and an estimated $1.3 billion budget hole.
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