Publications

Michigan at a crossroads: CHRT highlights key health policy issues for the incoming gubernatorial administration

Two feet standing on a road, with a red stripe going one direction and a yellow stripe going the other direction, showing how Michigan health policy issues are at a crossroads.The Michigan government has jurisdiction over a wide array of health policy issues. From the regulation of insurance products, to oversight of the state’s Medicaid program, to investing in local public health efforts, Michigan policymakers craft policies and budgets that impact the health of millions of Michiganders.

This brief provides an overview of four key and timely health policy topics:

  • Medicaid and the Healthy Michigan Plan;
  • the individual health insurance market and the federal Health Insurance Marketplace;
  • the opioid epidemic; and
  • the integration of services to address the social determinants of health.

With the expansion of Medicaid and the launch of the Affordable Care Act’s individual Health Insurance Marketplace, the numbers of uninsured Michiganders have been considerably reduced since 2013. Yet Michigan policy makers will still face numerous policy issues and decisions related to health care coverage, health disparities, and access to care in the years to come. Our state will continue to struggle with complex health issues such as substance use and access to mental health services.

Michigan policy leaders, local public health agencies, and the private sector are engaged in many innovative initiatives to address these issues and improve the health of communities. In particular, the state has committed to programs that are intended to improve health equity and focus on the social determinants of health.

All of this work is being conducted at a time of great political change and considerable turmoil at the federal level. The new governor and the 100th Legislature will be faced with both tremendous responsibility and opportunity to shape the health policy landscape for years to come.

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Health Care Provisions in the Tax Cuts and Jobs Act (H.R. 1)

Buttons decorated like the American flag, with "Tax Cuts and Jobs Act" written on them.

Buttons decorated like the American flag, with "Tax Cuts and Jobs Act" written on them.The Tax Cuts and Jobs Act passed the U.S. House of Representatives on November 16, 2017, and an amended version passed the U.S. Senate on December 2, 2017. Congress reconciled the differences between the two bills in a compromise conference report.

While the purpose of the legislation is to reduce tax rates for businesses and individuals, it includes several major health care policy changes. 

For instance, the act repeals the tax penalty for those who choose not to enroll in health insurance. CBO estimates the impact of this will be that 13 million fewer individuals will have health insurance over 10 years and health insurance premiums for ACA Marketplace plans will increase an additional 10% per year.

The Tax Cuts and Jobs Act also lowers the threshold of health care tax deductions from 10% to 7.5% of income for 2017 and 2018. This means that more taxpayers and more expenses will be eligible for the deduction.

Finally, the act limits the tax credit amount for pharmaceutical companies that develop drugs to treat rare diseases from 50% to 25% of qualified clinical testing expenses.

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Editor’s Note: CHRT updated this fact sheet Jan. 12, 2018 to include more recent Medicare beneficiary numbers, updated information on PAYGO, and reflect that the conference report is now law.