Michigan Plan Would Extend Coverage to Adults Through State’s CHIP Program

A plan by Michigan Gov. John Engler (R) would provide health benefits through the state's CHIP program to more than 220,000 low-income adults who do not qualify for Medicaid and cannot afford private insurance, the Detroit News reports. According to the News, Engler is expected to submit a waiver to the federal government asking to expand MIChild, the state's CHIP program, into a program called MIFamily. The MIFamily plan would cover outpatient care, prescription drugs, mental health and substance abuse services and "limited" inpatient care for the following people:

• About 80,000 parents or guardians of children enrolled in MIChild who have annual incomes between 51% and 100% of the federal poverty level, or $7,535 to $15,070 for a family of three. Currently, low-income adults can qualify for public health coverage through Medicaid if their annual incomes are less than 50% of the federal poverty level, or $7,534 for a family of three.
• People with disabilities who have annual incomes of up to $31,188. Currently, people with disabilities who earn more than $21,886 per year are ineligible for health benefits through Medicaid.
• About 2,000 pregnant women with annual incomes between $21,182 and $23,980. Currently, pregnant women can receive health coverage through Medicaid if their annual incomes are at or below $21,181.

Plan Has 'Skeptics'
Advocates are "skeptical about how Engler's proposal would expand benefits without cutting into services offered by MIChild and Medicaid," the News reports. Mark Reinstein, vice president of Michigan's Mental Health Association, said, "It's hard to fathom that we will offer health insurance to a couple hundred thousand people and do it without increasing costs and somehow leave the existing services alone." But state officials have said that coverage for mental health services, seniors, pregnant women and Medicaid beneficiaries would not be changed. Critics also questioned how the state would pay for the expansion, particularly because officials recently made cuts to Medicaid to eliminate a nearly $1 billion state budget deficit this year. Engler plans to use $300 million in federal money earmarked for MIChild to fund the expansion. Michigan currently contributes 31% of the costs for MIChild, with the federal government providing the rest. If the federal government approves the waiver, it will allow the state to count "the money it already spends" on health insurance programs toward its contribution to MIFamily, Geralyn Lasher, a spokesperson for the Michigan Department of Health, said (Kozlowski, Detroit News, 2/4).