Michigan Governor Establishes Commission To Address Increased Costs in State’s Medicaid Program

Michigan Gov. John Engler (R) has issued an order to establish a Hospital Advisory Commission within the state Department of Community Affairs to address the "rising cost" of the state's Medicaid program, the Detroit Free Press reports. The commission, which will include seven members appointed by the governor, will advise the community affairs department director on health care access issues. In addition, the commission will determine "how to maximize and distribute millions in federal funds" available to Michigan hospitals that provide health care for underserved state residents. Engler spokesperson Susan Shafer said that the commission would offer "an opportunity to work with members of the health care profession to address the burden that Medicaid is putting on the state budget." Medicaid accounts for about 25% of the state budget, or about $5 billion per year, and "it's only going to grow and continue to be important to the state," she said. Michigan's Medicaid program serves about 1.2 million beneficiaries, and about 10,000 residents per month have enrolled in the program over the past 14 months.

MHA Reaction
The Michigan Health and Hospital Association "questioned the timing" of the order to establish a hospital advisory commission -- which will take effect in October -- less than three months before Engler leaves office. In addition, the group raised concerns that the "composition of the commission might be too narrow and its mission too broad." However, MHA spokesperson Sherry Mirosola said the group is "happy that long-term examination of health care is being advocated" (Norris, Detroit Free Press, 8/24).