Michigan Prepares for Federal Medicaid Work Requirements as Officials Warn of Coverage Losses
Michigan officials warn hundreds of thousands could lose Medicaid coverage as new federal work requirements take effect.
LANSING, MICHIGAN — Michigan health officials are preparing for changes to the state’s Medicaid program that could result in many residents losing health coverage over the next few years.
The Michigan Department of Health and Human Services must implement new federal mandates under H.R. 1, known as the “One Big Beautiful Bill,” including work requirements that will require most Medicaid recipients to work 80 hours per month to qualify for benefits. Recipients will also need to reapply for coverage every six months instead of annually.
Elizabeth Hertel, director of the Michigan Department of Health and Human Services, warned during a press conference hosted by the Protect MI Care coalition that the changes could have serious consequences for Michigan families.
Hundreds of Thousands Could Lose Coverage
“That’s hundreds of thousands of our friends, our family members and our neighbors who could be without health care coverage,” Hertel said. “Medicaid’s positive impact only solidifies that we must protect and strengthen our Medicaid program now and for future generations.”
The new requirements will place significant administrative burdens on both recipients and state staff. Department leaders testified to the Michigan House Appropriations Subcommittee on Medicaid and Behavioral Health on Tuesday about the challenges ahead.
State Seeks Nearly 600 New Positions
Governor Gretchen Whitmer’s executive budget recommendation includes 589 additional full-time positions in the department to handle the increased workload. Erin Frisch, senior deputy director of economic stability administration, estimated the changes would require 700,000 additional processing hours annually for caseworkers.
Meghan Groen, senior chief deputy director of health services, also testified alongside Frisch about the staffing needs created by the federal mandates.
The Protect MI Care coalition is pushing state legislators to fully fund the gaps in Medicaid coverage left by the federal cuts. Dr. Farhan Bhatti, CEO of Care Free Medical in Lansing, spoke at the press conference about the potential harm to patients from reduced Medicaid access.
Administrative Challenges Mount
The more frequent reapplication process represents a major shift from current policy, where recipients typically renew their coverage annually. The six-month cycle is expected to create additional paperwork burdens for both beneficiaries and state workers processing applications.
State health officials are working to prepare systems and staff for the implementation of these federal requirements, though the timeline for full implementation remains unclear. The department continues to advocate for adequate state funding to support the increased administrative demands while maintaining coverage for vulnerable populations.
