Michigan

MDHHS has launched the Michigan Work and Exemptions Screening Tool to assist Healthy Michigan Plan beneficiaries in navigating new federal Medicaid work requirements. The tool helps identify exemptions and guides users through compliance steps. MDHHS is also improving notices, application processes, and support services with community navigators and additional staffing. Most HMP beneficiaries will transition to six-month Medicaid renewals as part of these changes. Key contacts: Lynn Sutfin Sutfinl1@michigan.gov Event schedule: - Work requirements begin - 01/01/2027 - Work requirements reviewed for current beneficiaries at renewal - 03/01/2027

Michigan received $173 million from CMS for the first year of the Rural Health Transformation Program, aimed at increasing access and improving outcomes for rural residents. The program will invest in innovative delivery models, regional partnerships, workforce development, and technology infrastructure, with a needs-based framework prioritizing high-need and high-rural counties. Subrecipient awards and grant opportunities are being rolled out to implement the state's strategic goals in rural health. Key contacts: MDHHS-RHTP@michigan.gov; MDHHS-EGrAMS-Help@michigan.gov Event schedule: - Notice of Funding Opportunity released by CMS - 09/15/2025 - Michigan's proposal submitted - 11/03/2025 - CMS awards released (all 50 states) - 12/29/2025 - Budget Period 1 begins - 12/31/2025 - Budget Period 1 ends - 10/30/2026 - Budget Period 2 begins - 10/31/2026 - Budget Period 2 ends - 10/30/2027

The federal government authorized $50 billion in RHTP funding to support rural health transformation amid Medicaid cuts. CMS issued an NOFO in September 2025 inviting states to apply by November 5, with awards due by end of 2025. The program encourages states to engage stakeholders and focus on sustainability and health outcomes. Event schedule: - NOFO Release - 09/15/2025 - Application Due Date - 11/05/2025 - Award Date - 12/31/2025

H.R.1 establishes the Rural Health Transformation Fund, providing $50 billion in funding from 2026 to 2030. States must prepare and submit transformation plans and will be responsible for annual reporting to CMS. Allowable activities cover provider payments, workforce development, technology innovation, behavioral health, and chronic disease management. Award distribution will follow a mix of equal shares and CMS discretion based on ruralness and application quality. Key contacts: Patti Boozang pboozang@manatt.com Event schedule: - CMS Releases NOFO - September 2026 - States Develop Applications - Q1 2026 - Application Due - CMS Makes Awardee Decisions - 12/31/2026

This expert perspective provides guidance for state leaders preparing for the Rural Health Transformation Program, emphasizing stakeholder engagement, innovation, and sustainability. It promotes using RHTP funds for preventive care, workforce development, telehealth, and community-based health models. Accountability, outcome measurement, and long-term sustainability are recommended to ensure that RHTP investments yield lasting rural health improvements. Event schedule: - Expected CMS application release - 09/01/2024 - Expected state plan submission deadline - 11/01/2024

Michigan progressed to full project governance and launched four multi-million dollar pillars addressing rural health partnerships, workforce, information technology, and access. Over $73.5 million in LOIs and $48.7 million in competitive GFOs were released in the first year, with over 140 partnerships formalized. The project is ahead of schedule in governance and infrastructure, but implementation of direct service activities begins after Year 1. Key contacts: Michigan Center for Rural Health (MCRH); Michigan Department of Health and Human Services (MDHHS) RHTP Program Director Event schedule: - First GFO (Chronic Disease) Application Deadline - 08/11/2026 - Workforce RFPs Release - 07/2026 - Quarterly Plan Review - Quarterly - Launch mentorship program - 2028-10-01 - Michigan - Midway evaluation - 2028-10-01 - Michigan - Provide TA - 2028-10-01 - Michigan - Midpoint evaluation - 2028-10-01 - Michigan - Continuous assessment - 2028-10-01 - Michigan

This independent policy analysis of RHTP funding estimates finds that allocations are not clearly aligned with areas of highest rural mortality or Medicaid reductions. While states with larger rural populations and hospital bed losses are projected to receive somewhat higher funding, differences are modest and generally disconnected from health need. Only a minority of states are projected to have RHTP funding offset their anticipated Medicaid cuts.

The program focuses on partnerships among providers and communities, workforce development, health information exchange, expanding care closer to home models, and supporting Tribal-led initiatives. Funding decisions are guided by data-driven assessments of rural community needs, prioritizing counties with high chronic disease rates and limited healthcare access. The program operates in Budget Periods starting December 31, 2025 through October 30, 2027. Event schedule: - Notice of Funding Opportunity Released - September 15, 2025 - Michigan Proposal Submitted - November 3, 2025 - CMS Awards Released - December 29, 2025 - Budget Period 1 Begins - December 31, 2025 - Budget Period 1 Ends - October 30, 2026 - Budget Period 2 Begins - October 31, 2026 - Budget Period 2 Ends - October 30, 2027

Michigan Department of Health and Human Services (MDHHS) has issued multiple solicitations in 2026 for the Rural Health Transformation Program focusing on improving rural healthcare access, workforce wellness, and chronic disease care coordination. Michigan was awarded over $173 million in federal funding in late 2025 to support these rural health initiatives. Key contacts: MDHHS-RHTP@michigan.gov Event schedule: - Announcement date for Transportation application - 07/17/2026 - Announcement date for Workforce initiative and Chronic Disease Collaborative Care Fund - 07/08/2026 - Announcement date for Advisory Council applicants - 01/13/2026 - Announcement date for Michigan federal award - 12/30/2025

The Advisory Council supports engagement strategies and provides feedback to improve rural health collaborations in Michigan. Members represent diverse organizations across the state to advise MDHHS on Rural Health Transformation priorities and policies. Key contacts: Alan Bolter; Andrea Wendling, M.D.; Andrew Chosa; Angela Madden