Because inpatient is the only way insurance will pay for it - at least until now.

Quick facts:

• When Medicare makes a reimbursement policy, the rest of the industry follows
• Big Insurance and Big Hospital lobbying set the Medicare reimbursement rule listing inpatient-only procedures
• Inpatient monopoly ties surgeons to hospital control (limiting innovation and competition)
• Decades of physician complaints drive this change to equalize inpatient and outpatient reimbursement rates.

MDHHS issued this provider alert on September 23.

The Michigan Department of Health and Human Services (MDHHS) is issuing this Provider Alert to inform all Medicaid providers of the gradual elimination of the Medicare inpatient only (IPO) services list announced in the CY 2026 OPPS Final Rule. These codes are presently reimbursable only when performed in an inpatient hospital setting.

MDHHS will follow Medicare’s phase‑out schedule, which began January 1, 2026. The IPO list will be obsolete January 1, 2028. As these codes transition out of the IPO designation, MDHHS closely aligns coverage with Medicare’s policy and reimburse applicable services under the Outpatient Prospective Payment System (OPPS) in accordance with CMS Addendum B. When service coverage/reimbursement methodology differences exist between Medicare and Medicaid, Medicaid fee schedules are utilized. The current Michigan Medicaid fee schedule is available at Information Specific to Different Providers.

Inpatient only services have a Medicare OPPS status indicator (SI) of “C” and are listed in addendum E of each year’s OPPS/ASC final rule located on the CMS Hospital Outpatient Regulations and Notices page.

https://www.mackinac.org/blog/2026/michigan-needs-more-nursing-homes-why-are-we-still-blocking-them

Michigan needs more nursing homes; why are we still blocking them?

Certificate of Need laws deliberately limit health care for seniors

Jeffery L. Degner    |    July 28, 2026

Imagine being confined to a nursing home bed, falling out and breaking a femur. When you complain of the pain, you aren’t offered any pain medication, and you have to wait 20 hours before being sent to an emergency room.

This situation isn’t fiction for one Michigan-based patient. While the facility and many like it maintain a respectable online rating, inspections by the Center for Medicare and Medicaid Studies paint a different picture. Unfortunately, Michigan’s nursing homes and long-term care facilities are characterized by overloaded staff, bed shortages, and decreased quality of care.

The pathology that causes these sub-standard outcomes in all but 11 states has a name: Certificate of Need, or CON. Most Michigan residents are unaware that Certificate of Need laws deliberately limit their supply of nursing homes, MRI machines, and psychiatric beds. These goods and services are in high demand, and limiting supplies inevitably results in higher prices.

Michigan’s Certificate of Need Board determines the supply of medical care. It has two inherent flaws. The first is conflict of interest. While board members themselves may not directly benefit from their roles on the board, the hospital systems and insurers they represent stand to gain financially by blocking new competitors or from limiting their own services.

Michigan’s CON Board is filled by 11 unelected members who are appointed by the governor and approved by the Senate. They are required to declare conflicts of interest in every meeting. However, the board’s bylaws only vaguely define conflicts and leave it to board members to decide whether one exists.

This sets the stage for problematic incentives that tend to result in tit-for-tat voting patterns. Most people would view this set of incentives and probable outcomes as being full of conflicts of interest. Likely due to this weak definition, in the nine meetings held in 2024 and 2025, there was only one record of a voting abstention due to conflict of interest.

The second flaw is what’s known as “technocratic washing.” The CON Board outsources its bed-need decision to a complicated, 47-year-old clustering algorithm. Some CON board members have voiced concerns about the need to increase the number of nursing homes and beds, particularly in rural areas. But ultimately, the determination of whether the state needs new beds is not made by physicians or patients. Instead, the decision comes from a mathematical formula.

In meeting transcripts from January 2025, the statistician who developed the algorithm reported to the CON Board that for 2024, the state only needed 41,400 beds. The actual number at that time was 44,689. In other words, the algorithm’s output said that the state should eliminate 3,289 beds. In 2025, the same calculation would have the board believe that there were 2,792 too many nursing homes and long-term care beds.

According to the state of Michigan, the 75-84 age group may grow by approximately 45% by 2039. With Michigan seniors already paying $485 per day for nursing home beds, it’s no time to limit their supply. That daily price is nearly $30 more than the national average, and $75 per day more than it is in states without CON regulations (excluding California and Pennsylvania). The difference adds up to more than $2,000 more per patient per month in Michigan. Higher-than-average costs and higher-than-average occupancy would unquestionably invite more competition in a free market. Instead, Michigan’s CON board calls for the opposite.

Nursing facility expansion is a decision that should be handled by doctors, patients, or elder-care advocates. Instead, Michigan maintains a system that limits competition, reduces availability, and provides worse patient outcomes. The obvious solution would be to allow new competitors into this critical area of need.

State lawmakers may be unaware that special interests on the CON Board limit competition under the guise of high-sounding mathematics. In states where these boards don’t exist, citizens pay nearly 25% less per nursing home bed than in states like Michigan. In an age where affordability is on everyone’s mind, and where the senior population is surging, our lawmakers must set aside partisan differences and special interest loyalties in order to unleash competitive forces that better serve our aging population.

About half of the links are available at the Aug 17 MDHHS press release.
https://www.michigan.gov/mdhhs/inside-mdhhs/newsroom/2026/08/17/vaccine-rec

Conspicuously lacking in both: the waiver so frequently referenced here. More about that in the reply to follow.

Back-to-school vaccines: Engaging families, providing clarity and protecting kids
Public Health Bulletin for Health Care Providers - August 2026

Dear colleagues,  

With vaccine-preventable diseases (VPDs) like measles and whooping cough already circulating in Michigan and the school year starting, now is the time to engage families in serious conversations, providing support and guidance regarding their child(ren)’s immunizations.

In December 2025, the Michigan Department of Health and Human Services (MDHHS) issued a Standing Recommendation supporting vaccine recommendations grounded in rigorous scientific evidence and transparent decision-making. The Standing Recommendation advises clinicians to continue following the evidence-based childhood immunization schedule produced by the American Academy of Pediatrics (AAP), which has been endorsed by 12 leading medical and health care organizations including the American Academy of Family Physicians (AAFP), American College of Obstetricians and Gynecologists, American Medical Association, as the standard of care for immunization practices in our state.

While a federal executive order was recently issued on changes to the childhood immunization schedule, please note that MDHHS continually reviews evidence regarding vaccine safety and effectiveness, and there is no new data to support changes to the vaccine schedule at this time. Combination vaccines, including the MMR (measles, mumps and rubella) vaccine, have a long history of safety and effectiveness and can reduce the number of injections that children need.

The back-to-school season is a natural check-in point for families and their health care providers — and the clock is ticking. Many school districts have already begun classes, including Detroit and Grand Rapids. Encourage parents and caregivers to schedule back-to-school health care appointments now and ask them about catching up on any missed doses and getting this year’s flu vaccine.

Together we can work to ensure all Michigan kids are protected from VPDs before they return to the classroom. Thank you for your continued partnership and for providing excellent care.

Sincerely,

Natasha Bagdasarian, MD, MPH, FIDSA, FACP
Chief Medical Executive, State of Michigan

Sarah Lyon Callo, MS, PhD
Senior Deputy Director and State Epidemiologist, MDHHS Public Health Administration

Key points on Executive Order
Executive Order 14420 was signed Monday, Aug. 10, directing federal agencies to adopt “gold‑standard childhood vaccine recommendations” for Americans.

It recommends reducing the schedule from 18 to 11 routine vaccines, e.g., shifting vaccines like hepatitis A, influenza, COVID‑19 into “high‑risk” or “shared decision-making” categories.
It calls for splitting the combined MMR vaccine into separate measles, mumps and rubella doses and spacing out immunizations across multiple visits. However, this order serves as federal guidance only.
Michigan’s position — no changes
Childhood vaccine recommendations remain the same.
Michigan continues to endorse the AAP’s childhood immunization schedule.
Robust vaccine safety and effectiveness data.
The AAP, AAFP, U.S. Centers for Disease Control and Prevention (CDC) and peer-reviewed research consistently affirm the safety and high efficacy of the current childhood vaccine schedule.
Insurance coverage.
State laws continue to mandate coverage of all routine childhood vaccines — no changes to policies or billing standards in Michigan.
Waiver process.
Michigan’s established medical and non-medical waiver procedures remain unchanged — there have been no alterations to eligibility or submission requirements.
Bottom line for providers
Continue administering the full AAP/AAFP-recommended childhood vaccine schedule.
Vaccines remain covered by insurance under state-regulated plans.
There are no changes to the waiver process or school entry requirements.
If families express concerns about vaccine schedule alterations linked to the federal executive order, reassure them that Michigan’s standards have not changed and remain focused on safety and effectiveness.

The big picture
Keep the big picture in mind as you approach vaccine and VPD discussions, and help Michigan parents, caregivers and kids prepare for school.

Measles and whooping cough
The U.S. just recorded its worst measles rates in 35 years.
As of August, the country has already reported more measles cases in 2026 than in all of 2025, the highest annual totals since measles was declared eliminated in the U.S. in 2000.
Michigan has identified two measles outbreaks so far this year in Washtenaw and Ottawa counties, representing 78% of the state’s cases.
Pertussis (whooping cough) also remains a concern.
There have been 122 cases reported in Michigan as of May 31, including 33 infants under 2 years of age.
Severe complications are common with pertussis: one in three babies who contract it require hospitalization, one in five will develop pneumonia and some develop seizures or brain swelling.
Statewide vaccination is not high enough to prevent outbreaks of these highly contagious diseases.
In Michigan, MMR vaccine coverage among children 19 to 35 months stands at just 75.7%.
Diphtheria, tetanus and pertussis (DTaP) vaccine coverage is 67.8%.
Both are below the levels needed to prevent outbreaks.
Influenza (flu)
Recent flu seasons have hit children especially hard.
At the peak of the last season in Michigan, one in four emergency department visits among children ages 5 to 12 years were flu-related, and 12 pediatric deaths were confirmed — the second-highest total on record (2024-25 remains the highest at 14 deaths).
Despite this severity, childhood flu vaccination coverage has fallen to an all-time low of 19.4% in Michigan.
Children ages 6 months through 8 years receiving the flu vaccine for the first time need two doses spaced at minimum four weeks apart.
It is recommended to start the series now so they can complete both doses before respiratory illness season peaks. All children 9 years and older are recommended to receive a flu vaccine in October.

COVID-19
COVID-19 also presents substantial risks for children.
During last season’s peak, 421 children were hospitalized in Michigan. COVID-19 is especially risky for infants. Of the five confirmed COVID-19-associated pediatric deaths in Michigan, the median age was just 9 months.
Despite this risk, only 3% of Michigan children received a COVID-19 vaccine last season.
Current AAP recommendations call for unvaccinated children ages 6 to 23 months to receive two doses, spaced four to eight weeks apart.
Children ages 2 through17 years are recommended to receive one COVID-19 vaccine in October. Updated guidance is expected to be released by AAP on Wednesday, Sept. 2.

Key points
Michigan’s school vaccine waiver rate is the highest since 2013, leaving school systems at a greater risk for disruption and missed class time; and children who cannot be vaccinated for medical reasons or who are immunocompromised are more vulnerable.

Let's not go back in time.
In 1952, the U.S. saw more than 57,000 cases of polio; in 1958, there were 763,000 cases of measles nationwide. Vaccines made those numbers — and those diseases — history. With vaccination rates now falling, that history is threatening to repeat itself. Infants, young children and medically vulnerable kids face the highest risk of severe illness, hospitalization and death from these diseases.
Every missed or delayed vaccine is a missed opportunity to protect a child and their entire classroom.
Michigan is following AAP-recommended immunization schedules.
Talk to parents about which vaccines their child or children need.
If asked about recent updates to the U.S. childhood immunization schedule, please refer to MDHHS’s statement issued on Jan. 6.

Action steps
Provide parents with a copy of their child’s immunization record.
Encourage parents to know their child's risk: look up a school's immunization and waiver rates on the MDHHS website.
Remind them to check the vaccination status of every child in the household, not just the youngest. Nearly half of this year’s national measles cases are kids and teens ages 5 to 19 years.
Ask parents about catching their children up on any missed doses and ask about this year's flu vaccine during their appointment.
Direct parents and caregivers to visit IVaccinate.org for accurate, evidence-based vaccine information.
Sign up for the Michigan Health Communications Initiative’s monthly newsletter and search the resource library at any time for the information your community needs most. Social media content, printable flyers and other resources are available for download across a variety of health topics. All resources are free to use and share — no attribution required.
Review trends for VPDs and immunization rates on MDHHS Immunization Data and Statistics webpage.

We're about to find out.

I do recall worried Moms seeking alternate suppliers a previous time MDHHS pulled a switcheroo. Babies have their preferences, after all. Intolerances, too.

Yesterday's presser.

https://www.michigan.gov/mdhhs/inside-mdhhs/newsroom/2026/08/19/wic-formula

Michigan WIC program announces infant formula changes

Mead Johnson to provide formula effective November 1

LANSING, Mich. – The Michigan Department of Health and Human Services (MDHHS) has awarded the Women, Infants, and Children (WIC) infant formula manufacturer contract to Mead Johnson through a competitive bidding process.

Michigan WIC will implement the contract with Mead Johnson for a five-year term beginning Sunday, Nov.1. Michigan WIC’s current contract with Abbott will remain in effect until Saturday, Oct. 31. WIC formula benefits will then transition from Abbott Similac products to nutritionally comparable Mead Johnson Enfamil products.

Mead Johnson infant formulas available through the WIC contract include:

Enfamil Infant.
Enfamil ProSobee.
Enfamil Gentlease.
Enfamil AR.
Enfamil Reguline.

WIC helps ensure the health of pregnant and postpartum women, infants and children by providing nutrition education, nutritious foods, referrals to health and community services, and strong support and encouragement for breastfeeding as the optimal nutrition for infants. WIC offers a wide range of breastfeeding services, including individualized lactation support, peer counselors, breastfeeding classes and access to breast pumps. For women who do not exclusively breastfeed, WIC provides infant formula.

In addition to breastfeeding support and infant formula, WIC also provides supplemental foods such as milk, cheese, yogurt, fruits and vegetables, whole grains, juice, eggs, cereal, peanut butter and dry beans.

Competitive bidding for infant formula is required by the U.S. Department of Agriculture (USDA), which funds WIC. State WIC programs receive a rebate from formula manufacturers on each unit of contract infant formula provided to WIC participants, which helps the program enroll more infants, women and children. Michigan WIC serves approximately 187,000 participants each month, including 40,000 infants.

To learn more about Michigan WIC, visit Michigan.gov/WIC or download the free WIC Connect app. For more information on WIC infant formulas, call 800-942-1636, option 2.

# # #

USDA is an equal opportunity provider, employer and lender.

Wonder how Abbott and Mead Johnson's stocks responded?

Kudos to the watchdogs!

https://www.michigancapitolconfidential.com/news/michigan-could-be-first-midwest-state-to-upgrade-snap-cards

Michigan could be first Midwest state to upgrade SNAP cards

State begins mailing chipped Bridge cards after years of theft

Scott McClallen   |   August 14, 2026

Help is on the way for Michiganders who rely on taxpayer help to buy groceries via the Supplemental Nutrition Assistance Program. The state is upgrading Bridge cards to help prevent theft of benefits.

The Michigan Department of Health and Human Services has mailed about 1,000 households upgraded SNAP cards that have a chip that provides a higher level of security.

If Michigan can mail out the rest of the cards this year, it will become the first state in the Midwest to upgrade SNAP cards.

The department will mail cards to more than 699,000 households from Mid-August through September 2026, according to a document that Michigan Capitol Confidential obtained through a records request.

Timeline Progress 072326 (1) by mcclallen

That chip replaces a magnetic strip that’s easily clonable by criminals. Cloned cards can be spent at approved retailers nationwide. Criminals steal customer data by placing fake point-of-sale machines at high-traffic areas including gas stations, liquor stores and grocery stores. Private banks upgraded their cards in 2015.

Michigan recently cut its reported SNAP fraud nearly in half, from about $14 million in 2024 to $7.7 million in 2025.

The upgrade should save taxpayers millions of dollars, Rep. Jason Woolford, a Howell Republican who sponsored the bill, told CapCon in an email.

“This upgrade brings our benefits system into the modern era and will save taxpayers millions of dollars by cutting down on abuse and fraud that has gone unchecked for far too long,” Woolford wrote. “Chip‑enabled cards increase security and significantly reduce skimmer and cloning fraud. In fact, Visa identified an 85% reduction in fraud in 2019 after chip technology was introduced. We’re adding real security, real accountability, and real transparency to a system that has needed it for years.”

For over a decade, criminals have been stealing from Michigan’s poorest residents who rely on the Supplemental Nutrition Assistance Program to buy groceries.

In 2023 and 2024, more than a hundred people in Oakland County reported that their SNAP benefits had been stolen and mostly spent in other states. One county law enforcement officer said in 2024 that the state’s Bridge card system had been hacked, CapCon reported in July.

Alabama, California, Oklahoma, Massachusetts, Maryland, and New Jersey have upgraded to chipped SNAP cards, while Arkansas, Oregon, Virginia, and New York are in the process of upgrading, according to a dashboard from the U.S. Dept. of Agriculture.

Michigan’s state health department has not responded to a request for comment about the card upgrade.

https://www.michigan.gov/mdhhs/inside-mdhhs/newsroom/2026/08/11/mdhhs-seeks-to-partner-with-local-governments-on-projects-designed-to-address-substance-use-disorder

https://www.michigan.gov/opioids/opioidsettlements/opioid-settlement-matching-initiative

MDHHS seeks to partner with local governments on projects designed to address substance use disorder
By Lana Stebbins - August 11, 2026

Coordinating investments strengthens impact, extends reach of opioid settlement dollars

The Michigan Department of Health and Human Services (MDHHS) has launched a new initiative inviting local governments receiving opioid settlement dollars to propose joint projects to address substance use disorder (SUD) prevention, reduce overdose risk, expand treatment access and support long-term recovery. The initiative encourages governments to identify opportunities for coordinated investment with MDHHS to strengthen community impact and extend the reach of opioid state and local settlement dollars.

“Michigan continues to be a leader in addressing substance use disorder, with the state’s overdose death rate declining by 47% since 2021,” said Dr. Natasha Bagdasarian, chief medical executive and chair of the Michigan Opioids Task Force. “Public health officials, state agencies and community partners have been working tirelessly to reverse overdose trends. By pooling our resources and working together, we will be able to save even more lives.”

Michigan is slated to receive more than $1.8 billion from national opioid settlements by 2040, with half being distributed to the State of Michigan and the other half being distributed directly to local governments across the state. Because both levels of government are leveraging these resources to address the same gaps and priorities in responding to substance use, partnering allows for more impactful and sustainable solutions.

“Michigan communities know where local and regional gaps exist and what solutions are needed,” said Thomas Stallworth, MDHHS senior advisor, member of the Michigan Opioid Task Force and leader in Michigan’s response to the opioid crisis. “This initiative is about building on those insights and working together on projects that help both state and local governments move closer to shared goals, whether its preventing addiction, reducing the number of fatal overdoses or creating community supports that help people sustain recovery.”

Through this initiative, local governments may propose collaborative projects that align with Michigan’s statewide overdose strategy and are allowable under national opioid settlement agreements. These include efforts to expand prevention programming for youth, strengthen harm reduction services, build the SUD workforce capacity, improve treatment access and support recovery housing or peer-based services.

“Michigan's counties are leading intentional and community-driven efforts to address the drug overdose crisis, and they understand the unique needs of their residents,” said Amy Dolinky, director of opioid services, Michigan Association of Counties. “This initiative creates an opportunity to maximize the impact of settlement funds and build solutions that are more coordinated, sustainable and responsive to local needs.”

In the first few years of settlement spending, state-local partnerships have naturally emerged, Stallworth said, and this initiative seeks to build on these types of projects and continue to improve coordination on future investments. Examples include:

• William Schma House: A 48-unit permanent supportive recovery housing development in Kalamazoo, designed to provide stable, affordable housing combined with wraparound recovery services to help individuals sustain recovery. This project is slated to begin construction soon and is supported by settlement funds from the state, Kalamazoo County and other partners.
• Harm reduction services: Many cities and counties have leveraged funds to support harm reduction service delivery in their communities. In addition to funding many of these local organizations, MDHHS has leveraged its settlement allocation to make it easy and free for these organizations to order naloxone and other supplies through a statewide portal.
• Technical assistance: Between 2023 and 2025, MDHHS funded a collaborative consisting of Michigan State University, Wayne State University and the University of Michigan to provide technical assistance to counties. This included completing dozens of county needs assessments to inform local planning and spending efforts, hosting several webinars on topics related to settlements and strategic SUD response and evaluation planning. Starting this year, the Michigan Association of Counties received state funding to expand their technical assistance services directly supporting counties with planning and spending their settlement funds.

Today's MDHHS email.

All Providers,

MDHHS is currently experiencing a higher-than-normal volume of claim suspends. We are diligently working to process the claims and ask providers to allow additional time for the claims to be adjudicated. 

To determine why a claim has suspended review the CARC and RARC codes appended to the suspended TCN.

Providers with additional questions should contact Provider Support at 1-800-292-2550 or by email at ProviderSupport@Michigan.gov  

An entire section of the MDHHS website is devoted to Doing Business with MDHHS. From the Billing and Reimbursement file:

"The former MDCH explanation codes are obsolete and are not used for claim adjudication within CHAMPS. Providers must instead refer to the HIPAA compliant Claim Adjustment Reason Codes (CARC) and Remittance Advice Remark Codes (RARC) available through the CHAMPS claim inquiry process or included with the remittance advice. Please visit the Washington Publishing Company website for a complete listing and description of the HIPAA CARC and RARC codes at www.wpc-edi.com/codes."

https://www.michigan.gov/mdhhs/doing-business/providers/providers/billingreimbursement/explanation-codes

They may also remember the 2025 legislative hearings on Michigan's failures in Child Protective Services (CPS).
https://mihealthfreedom.org/community/michigan-bill-action/house-subcommittee-hears-about-abuse-failures-in-the-state-child-welfare-system/#post-1729

The latest wrinkle: the State of Michigan declares everything is all better now. The MDHHS press release was Friday, July 31, 2026.
https://www.michigan.gov/mdhhs/inside-mdhhs/newsroom/2026/07/31/mdhhs-achieves-core-pillar-in-latest-misep-report



MDHHS achieves core pillar in latest MISEP report by improving rate of permanency for children in foster care

Long-standing pillar now eligible to exit court jurisdiction

LANSING, Mich. - The Michigan Department of Health and Human Services (MDHHS) announced that it has achieved one of the core pillars of the Modified Implementation, Sustainability and Exit Plan (MISEP) related to child permanency. The MISEP report published today documents improved permanency for children who entered foster care by addressing barriers many parents face as they work their way toward family reunification.

“The safety, stability and well-being of the children in our care remains a top priority,” said Amy Epkey, MDHHS acting director. “Children thrive when they have consistent, caring adults in their lives. Permanency provides more than just placement — it provides a foundation of trust and support.”

In the last monitoring report, which provides an update on improvements the department continues to make to Michigan’s child welfare system, the court’s monitors documents MDHHS’s strategic plan to address identified barriers with a focus on ensuring adequate services, collaborative relationships with judicial partners and family engagement. The plan included:

Parental engagement: Early engagement with parents and caregivers, staff training on engagement services, reduced time to transition to unsupervised parenting time, and expanded options for parenting time through off-site parenting locations and additional hours.

Housing: The provision of funds to assist with housing and rent costs, connecting with community-based housing support, and referrals to MDHHS family resource specialists.

Mental health services: Active efforts to assist parents in obtaining services, ongoing meetings with Community Mental Health (CMH) on identified cases to streamline the referral process and involving clinical review teams.

Substance use: Early engagement of parents and referrals for intervention services, partnering with local CMH to streamline the referral process for treatment and referrals to community-based programs.

Based on this strategic plan and the improved permanency outcomes it generated, the department achieved the permanency commitment, which will be dismissed from court oversight.

Other key areas of progress noted as part of the latest MISEP reporting period of Jan. 1, 2025, to June 30, 2025, include:

Placing siblings together: During the reporting period, 84% of siblings who entered foster care placement at or near the same time were placed together, unless specified exceptions were met.

Sibling visitation: During the reporting period, 89.9% of children who had siblings in custody had at least monthly visits with their siblings who were placed elsewhere in foster care, exceeding the performance standard of 85%.

Medical and mental health examinations for children: During the reporting period, 85.2% of children had an initial medical and mental health examination within 30 days of the child’s entry into foster care, meeting the MISEP goal in this area.

About MISEP:

Federal court monitors have been tracking progress since a 2008 settlement agreement following a 2006 lawsuit filed against the former Michigan Department of Human Services by Children’s Rights. In 2019, the court approved the MISEP.

In January 2024, many requirements in the settlement agreement were eliminated with a stipulated order signed by Judge Nancy G. Edmunds because of the significant and sustained progress made by MDHHS in numerous areas.

In June 2026, the MDHHS filed a motion to terminate the MISEP, reflecting its belief that the department has made sustained progress and built durable systems to protect Michigan children.

To view the latest MISEP report, visit Michigan.gov/ChildWelfareAgreement.

# # #

https://www.michigan.gov/mdhhs/inside-mdhhs/newsroom/2026/07/27/fy27-budget

MDHHS FY27 budget expands behavioral health capacity, provides critical resources to implement federally mandated changes to Medicaid and SNAP, connects families to services and resources
By Lynn Sutfin - July 27, 2026

LANSING, Mich. – The Michigan Department of Health and Human Services’ (MDHHS) FY 2027 budget of more than $30.7 billion continues the critical work of protecting the health, safety and prosperity of Michigan families.

“This balanced, bipartisan budget helps ensure MDHHS can continue delivering critical services and supports that Michigan’s residents rely on every day,” said Amy Epkey, MDHHS acting director. “We remain committed to keeping kids safe and families together, reducing gun violence, ensuring access to SNAP, protecting Medicaid and continuing our progress in building access to behavioral health care, while maintaining a fiscally responsible budget. We appreciate the work of Governor Whitmer and the legislature in making these crucial investments.”

The department’s FY27 budget investments include:

The FY27 budget builds on last year’s budget, which protected $2.7 billion of core Medicaid services statewide. This fiscal year’s budget includes $168.6 million to prepare the state to meet new federal requirements that make it harder to access food and health care, and continues to fund initiatives to protect access to health care and ensure the sustainability of Medicaid including:

• $94.3 million in increased Supplemental Nutrition Assistance Program (SNAP) administrative cost-sharing from 50% to 75%.
• $54.3 million to support changes to Medicaid and SNAP to comply with federal H.R. 1 requirements.
• $20 million in FY26 supplemental funding for grants to community-based organizations to help individuals secure eligibility for Medicaid and SNAP.
• $33.8 million to begin operating the new Southeast Michigan State Psychiatric Hospital, bringing an estimated 72 new beds (35 adult beds and 37 pediatric beds) online during the first phase of expanded operations this fiscal year.
• $750,000 to help families navigate services and support available to individuals with autism and other intellectual and developmental disabilities. These services connect thousands of children and families to diagnostic and intervention services and vital safety net programs.
• $2.5 million to implement recommendations made by the Gun Violence Prevention Task Force last year, including waiting periods and background checks for all firearm purchases, banning untraceable “ghost guns,” strengthening school and community safety, stronger safe storage polices and prohibiting assault weapons.
• $4 million to establish and support the Home Help Caregiver Council. The council will directly support home help services by strengthening caregiver skills, achieving quality services for participants and improving individual home help caregiver retention through improved job satisfaction leading to better service and health outcomes for more than 60,000 residents receiving Medicaid-funded home help services.
• $351.8 million in FY26 supplemental funding to support minimum wage increases and paid sick leave for direct care workers while maintaining the existing $3.40 per hour wage add-on for services provided to Medicaid recipients.
• $70.5 million for substance use disorder prevention, harm reduction, treatment and recovery services through the Opioid Healing and Recovery Fund. These investments are part of a statewide strategy designed to save lives and reduce overdose deaths.
• $31.5 million to increase reimbursement for ground emergency medical transportation services provided by public entities.
• $13.5 million for targeted Medicaid enhancements for nursing home capital reimbursement rates, portable x-ray services and private duty nursing services.

https://www.michigan.gov/mdhhs/inside-mdhhs/newsroom/2026/07/17/rht-chronic-disease

MDHHS seeks applications for the Rural Health Transformation Program Chronic Disease Collaborative Care Fund
By Laina Stebbins - July 17, 2026

• Strengthening partnerships that support rural health transformation.
• Expanding and stabilizing the workforce needed to sustain community wellness.
• Advancing interoperability so providers can share information and coordinate care effectively.
• Developing models that bring essential services closer to where people live.