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Healthy Michigan Work Requirements Go into Effect

Our state's Medicaid expansion, known as the Healthy Michigan Plan, has substantially improved access to primary care and preventive services for enrollees according to two recent studies of the plan by the University of Michigan Institute for Healthcare Policy and Innovation.

Our state's Medicaid expansion, known as the Healthy Michigan Plan, has substantially improved access to primary care and preventive services for enrollees according to two recent studies of the plan by the University of Michigan Institute for Healthcare Policy and Innovation.

On January 1, new Medicaid work requirements kicked in for most able-bodied adults receiving healthcare benefits through Healthy Michigan. Beneficiaries ages 19-62 are required to complete and report 80 hours per month of work or activities unless they are exempt.

In November, a lawsuit challenging the work requirements was filed in federal court by a coalition of state and national healthcare advocates representing four plaintiffs who would be affected by the changes.

According to news reports, the lawsuit says the Trump administration “lacked the authority to approve the rules that undermine the Affordable Care Act.” It asks for the judge to declare the federal approval of the requirements illegal and to block them from being implemented.

On December 2, it was reported that Governor Whitmer said she hoped Michigan would pause the implementation of work requirements until the lawsuit was resolved. Doing so would require the support of Republican lawmakers. In a letter to the Michigan Senate, Governor Whitmer had said an independent analysis suggested that as many as 183,000 people could lose coverage from Michigan’s requirements.

In a statement to legislative leaders, the governor indicated the state has spent $28 million to implement the workforce engagement requirements and is on track to spend an additional $40 million this fiscal year — an unnecessary expense if a federal judge blocks the rules.

She called for legislators to "protect Michigan taxpayers while the courts determine legality."

Republican legislative leaders rejected the request.

Speaker of the House Lee Chatfield and Senate Majority Leader Mike Shirkey released a joint response stating, “Able-bodied adults who want cash assistance and subsidized healthcare coverage should obviously be expected to either work part time or at least prepare for a career in exchange for welfare benefits. That is simply common sense, and it is something the Michigan taxpayers who foot the bill for these programs expect. Out of respect for those taxpayers, we are not willing to pause our state’s new welfare work requirements.”

Michigan is currently the second state to implement work requirements.

Indiana implemented its plan in 2019, but it was reported in October that officials opted to suspend work requirement rules due to a pending legal challenge.

Work requirements have been set aside by courts in Arkansas, Kentucky and New Hampshire. A total of 19 states have work requirement waivers approved, pending or involved in legal challenges, according to the Kaiser Family Foundation.

Work requirement reporting in Michigan begins in February and will be done through MI Bridges or by telephone. Several exemptions are available, including being pregnant or medically frail, caring for a family member and being a full-time student. A complete list is available on the State’s Healthy Michigan Plan website.

According to the site, qualifying work or activities that make up the 80 hours per month can include on or more of the following:

  • Having a job or income

  • Being a student

  • Looking for a job

  • Volunteering (this activity can only be used for three months each calendar year)

  • Job training

  • Participating in a tribal employment program

  • Participating in rehab (substance abuse)

  • Vocational training

  • Completing an internship

As CMF reported in September, the governor signed Senate Bill 362 to increase the amount of time beneficiaries have to report work or activities and avoid losing coverage.

Want more?

Check out the Healthy Michigan Plan information made available on the State’s Plan website.

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