Legislative Analysis
Phone: (517) 373-8080
HEALTH AND SAFETY FUND DISTRIBUTIONS http://www.house.mi.gov/hfa
Senate Bill 929 as passed the House Analysis available at
Sponsor: Sen. Sarah Anthony http://www.legislature.mi.gov
Senate Committee: Appropriations [Discharged]
House Committee: Appropriations
Complete to 9-25-24
SUMMARY:
Senate Bill 929 would amend the Health and Safety Fund Act, 1987 PA 264, to modify
distributions from the Health and Safety Fund. Specifically, the bill would eliminate the
requirement that 25% of the annual deposit be utilized to offset indigent care within the
Medicaid program, instead allowing it to be utilized for the Medicaid program, in general.
MCL 141.475
FISCAL IMPACT:
The bill would allow $4.6 million of Health and Safety Fund state restricted revenue to be
repurposed from Medicaid Disproportionate Share Hospital (DSH) payments to a different
Medicaid line item. Due to changes in the federal Medicaid managed care rules, hospitals
will receive substantially increased supplemental Medicaid payments (an additional $2.5
billion) through Medicaid Hospital Rate Adjustments (HRA) paid through the Medicaid
managed care program. This increase to the HRA makes hospitals ineligible for DSH
payments, which are calculated based on, among other things, uncompensated or
undercompensated care. The enacted FY 2024-25 DHHS budget already assumes the
reallocation of this $4.6 million restricted to offset GF/GP appropriations related to general
Medicaid expenditures.
Fiscal Analyst: Kent Dell
■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their
deliberations and does not constitute an official statement of legislative intent.
House Fiscal Agency Page 1 of 1


Statutes affected:
Substitute (H-1): 141.475
Senate Introduced Bill: 141.475
As Passed by the Senate: 141.475
As Passed by the House: 141.475
Senate Concurred Bill: 141.475
Public Act: 141.475
Senate Enrolled Bill: 141.475