Without second Medicaid waiver, nearly 600,000 Michiganders will lose coverage

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Gov. Rick Snyder signing the bill to expand Medicaid health coverage to thousands of low-income residents.

(MLive File Photo)

LANSING, MI -- The state of Michigan on Tuesday submitted its second waiver application to the U.S. Centers for Medicare and Medicaid Services, which would allow the state's Healthy Michigan program to continue.

Michigan elected to expand its Medicaid program as allowed under the Affordable Care Act, calling it Healthy Michigan.

The first waiver Michigan needed, approved in 2013, allowed for some of Michigan's unique ideas like required co-pays and income-based premiums. The second waiver would allow for a soft cap included in Michigan's law that asks people between 100 and 133 percent of poverty level to pay higher premiums or seek coverage on the exchange after being on Healthy Michigan for 48 cumulative months.

"Submitting the second waiver for the Healthy Michigan Plan is an important step in continuing the progress we've made to improve the health of our residents and strength of our state," said Gov. Rick Snyder. "With nearly 600,000 Michiganders receiving Healthy Michigan Plan benefits, this is a program that makes a real difference in people's lives. I thank both the Michigan Department of Health and Human Services as well as the Centers for Medicare and Medicaid Services for their ongoing collaboration to see that this program continues."

If the waiver is not approved, the Healthy Michigan program would end April 30, 2016.

Department of Health and Human Services Director Nick Lyon said he'd had some initial conversations with the Centers for Medicare and Medicaid Services and will continue to work toward a successful outcome.

"With these waivers, it's a give and take. And this is the first step of the process," Lyon said.

Michigan does have a track record now. The state has signed up nearly 600,000 previously uncovered individuals under Healthy Michigan. The state has logged more than 2 million primary care visits from 455,000 people. They're seeing less emergency room visits and more preventative care.

"The Healthy Michigan plan was very innovative in the way that it approached healthy behaviors. We are a leader in the country in our Medicaid program in ensuring that there are incentives in place for healthy behaviors," Lyon said.

To align with Michigan law and see the Healthy Michigan program continue, the waiver must be approved by Dec. 31, 2015.

Emily Lawler is a Capitol/Business reporter for MLive. You can reach her at elawler@mlive.com, subscribe to her on Facebook or follow her on Twitter: @emilyjanelawler.

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