State Rep. Bronna Kahle’s plan to ensure county medical care facilities can continue providing crucial care to vulnerable community residents is now state law.

Kahle’s plan extends a sunset on a program that reimburses county medical care facilities that offer care to many Medicaid patients. The extension would allow counties to continue to pay their lower “maintenance of effort” rate, which would benefit the counties and the state. If the sunset isn’t extended, Kahle said it could force some medical facilities to close if they are unable to fund facility operations and would put the elderly and those who are Medicaid-covered at risk.

“Continuing this program will keep both state and county costs constant and maintain the care provider system for our most vulnerable senior citizens,” said Kahle, who chairs the House Health Policy Committee. “Without this change to state law, facilities would have incurred significant cost increases that will detrimentally affect Medicaid patients in need of care, especially during this time of inflation. County care facilities ensure everyone has a place to turn for care, regardless of their economic status. It’s crucial that these facilities are sustained.”

Prior to the implementation of this program in the 1980s, county care facilities were unable to cover their costs, forcing facilities to request county commissioners to allocate local appropriations to make up the difference.

Kahle said county residents across the state have been forced to shoulder care facility costs over the years by way of county millages, as is the case in Lenawee County.

The maintenance of effort rate for county medical care facilities was set to sunset in December. It has been regularly extended since the program was first implemented. Kahle’s plan would extend the sunset date for three years or until the state creates a new reimbursement system.

House Bill 5875 is now Public Act 98 of 2022.

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