Michigan Medicaid: A primer for Michigan’s legislators and policymakers
Medicaid is a jointly funded federal and state program that provides health insurance coverage for many low-income children and adults, making it an important and 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 considerable power to tailor Medicaid policy, benefits, and services to address their residents’ health and social needs. In Michigan, both traditional Medicaid and the Healthy Michigan Plan (HMP) cover Michiganders. HMP provides coverage for individuals who became eligible through the Michigan Medicaid expansion, implemented in 2014.
This primer provides key information about Medicaid in Michigan, including:
- Medicaid financing: The program is jointly funded by the state and federal government, with $18.5 billion in federal contributions in FY24.
- Eligibility and benefits: Michigan Medicaid covers people with incomes up to 138% of the Federal Poverty Level, providing a range of services like hospital visits, dentistry, behavioral health, and long-term care.
- Program challenges: Challenges that impact the program include costs and cost variation by beneficiary group, low provider reimbursement rates, and enrollment complexity.