A new University of Michigan study finds Michiganders who enrolled in expanded Medicaid health coverage also improved their financial health.
The Healthy Michigan program expanded more than a decade ago.
Dr. Nora Becker is a primary care doctor and health economist at U of M, and an author of the study. She said it found since 2014, along with providing health benefits, Medicaid expansion has helped reduce medical debt and improved enrollees' credit scores.
“Medicaid expansion in Michigan really does a phenomenal job of protecting low income people from the cost of medical care and insuring they’re really able to continue to access it,” said Becker.
However, Becker is concerned new federal work requirements and other changes starting in 2027 may force some people who qualify off of Medicaid.
Starting January 1, 2027, Medicaid will include mandatory work requirements for adults from 19 to 64 years old. Enrollees must report work hours or prove an exemption (e.g., disability, pregnancy, caregiving) to avoid losing benefits. Most Medicaid expansion enrollees will also be required to renew their coverage every six months, a shift from the previous annual renewal cycle.
“We are concerned that the financial benefits that we found in this paper may be lost,” said Becker, fearing that many qualified Medicaid enrollees will be dropped from the program because they may not understand all the new requirements.
The study appears in JAMA Network Open. The study was done by the U of M Institute for Health Care Policy and Innovation as part of an official evaluation of the Healthy Michigan program.
