On July 1, 2009, a Michigan Executive Order will enact major benefits cuts that will affect Medicaid and healthcare recipients across the state. The order, signed by Governor Jennifer Granholm, purports $304 million in emergency budget cuts as the government attempts to stabilize its budget. Medicaid reimbursements and hospital funds will be cut by 4%, and spending for statewide mental health services will be reduced by $10 million.

Additionally, optional Medicaid services will now only be available in situations of “emergency:” This includes chiropractic, podiatric, optometric and dental services, as well as nonemergency transportation. Further reductions will be made to local public health operations and migrant health outreach programs. Economic woes heightened by a sharp decline in tax revenue and the suffering auto industry contributed to the downsizing of the state’s public health benefits. The budget reductions are to be implemented from July to September, with state cuts in the next fiscal year projected to total $670 million.