Governor Rick Snyder's administration is "encouraged" by a House Republican plan to overhaul Medicaid in the state.
But it's concerned about language that would kick able-bodied adults off the program after four years.
Department of community Health director Jim Haveman says the House plan is "a good starting point" for negotiations.
"I'm really cautiously optimistic that, by the time this is done over the next two weeks, we'll have a bill that we all can be very supportive of and we can collectively go sell and get the waiver from the federal government."
The federal government is offering to pay for an expansion of Medicaid that would add hundreds of thousands of Michiganders to the program. But Republican leaders in the state Legislature say they're not willing to expand the system without major changes.
Washington would have to approve the state's alternative to the plan.
