GRAND RAPIDS (WZZM) --- Governor Rick Snyder is embracing a key element in the Affordable Care Act. It's a move that will likely face resistance from fellow republicans. The governor said he wants to expand Medicaid, providing health care coverage for thousands of uninsured Michiganders.
Governor Snyder says expanding Medicaid will save the state one billion dollars over a decade and insure 450,000 additional residents.
Federal funds from the Affordable Care Act will pay the total cost of the expansion until 2016 when Michigan will have to start paying in.
By 2020, Michigan will pay for 10 percent of the expanded program. Governor Snyder says during the first few years when the expansion is free for Michigan, the state will put $100,000,000 of savings into a rainy day fund every year.
In 2020 when Michigan has to pay 10 percent of Medicaid, he says we'll use that savings fund to offset the costs.
Once the savings fund runs out, the governor hopes to pay for Medicaid assuming the state's economy has improved by that time. He hasn't said how Michigan would pay if the economy is declining.
We're still waiting for the governor's hard numbers.
The governor says he'll release that information Thursday when he unveils the 2013 budget.