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Michigan’s Medicaid program provides health insurance coverage for many low-income children and adults. It is a powerful tool for improving the health of Michiganders.

In June 2024, over 2.6 million of Michigan’s 10 million residents were enrolled in Medicaid: 1.7 million adults and 946,314 children. Most of Michigan’s Medicaid costs —over 65 percent in 2024—are paid for by the federal government.

States have the power to tailor Medicaid policy, benefits, and services to address the health and social needs of their residents. In Michigan, both traditional Medicaid and the Healthy Michigan Plan (HMP) cover Michiganders. The Healthy Michigan Plan, which was implemented in 2014, expands health insurance coverage to more Michiganders.

This primer provides key information about Medicaid in Michigan, including:

• Financing: The federal government finances the majority of Michigan’s Medicaid costs. 
• Eligibility and benefits: The program covers people with incomes up to 138% of the Federal Poverty Level, providing a range of services like hospital visits, dentistry, behavioral health care, and long-term care.
• Challenges: Challenges that impact the program include costs and cost variation by beneficiary group, low provider reimbursement rates, and enrollment complexity.

Medicaid spending

The largest spending category in the Michigan state budget is for the Michigan Department of Health and Human Services (MDHHS), which includes spending for Medicaid. MDHHS’s $37.7 billion budget represented 45 percent of the total state budget in FY 2024-25. Within the MDHHS budget, the Medicaid program constitutes the largest spending category, totaling approximately $24 billion. However, Michigan pays less than 25 percent of this amount. The federal government covers the rest. 

Medicaid eligibility

Medicaid provides health insurance coverage for Michiganders with incomes up to 138 percent of the federal poverty level (FPL). In 2024, that is an annual income of $20,783 for a single-person household and $35,632 for a family of three. Individuals who earn more than the income limit may also qualify, including pregnant women and people with disabilities.

Low-income individuals are more likely to have a higher burden of chronic disease and poorer health outcomes. A contributing factor to this disparity is access to healthcare, including health insurance coverage.

Medicaid Primer