Appropriations subcommittee hears House Fiscal briefing on Michigan Medicaid, behavioral health budget

At a meeting of the House Appropriations Subcommittee on Medicaid and Behavioral Health, House Fiscal analysts provided an overview of the FY 2024‑25 Medicaid and behavioral health appropriations, outlining funding sources, caseload trends, and fiscal risks tied to potential changes in federal matching rates.

House Fiscal deputy director Kevin Korscher and analyst Kent Bell told the subcommittee the DHHS Medicaid and behavioral health gross appropriations for FY 2024‑25 are about $28.3 billion, of which roughly $4.8 billion is state general fund and about $19.7 billion is federal matching revenue. "Medicaid is a joint federal state program primarily for low income families, kids, and persons with disabilities," Bell said, adding that roughly 70% of the medical services and behavioral health budget is funded through federal revenue. "For FY 24‑25, the match rate right now is 65.13%," Bell said.

Nut graf: The briefing matters because Medicaid and behavioral health together make up a large share of the state budget and changes to federal policy or match rates could require the Legislature to identify hundreds of millions or more in additional state funding. House Fiscal told the committee these appropriations account for about 35% of the state's $81.4 billion budget and roughly 32% of the state's $14.9 billion general fund.

House Fiscal presentations and…