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County committee to forward resolution opposing MDHHS plan to competitively procure prepaid inpatient health plans
Summary
A county committee advanced a resolution opposing the Michigan Department of Health and Human Services’ plan to open competitive procurement for PIHP contracts, citing concerns about reduced local oversight, transparency and potential service cuts.
A representative of Region 10 Prepaid Inpatient Health Plan (PIHP) told the county’s Human Services Committee that the Michigan Department of Health and Human Services (MDHHS) intends to pursue a competitive procurement that would replace the current public PIHP arrangements. The presenter urged the county to adopt a resolution opposing that MDHHS plan and to join the Michigan Association of Counties in asking the governor to reconsider.
The speaker explained that the MDHHS proposal would reconfigure regional PIHP arrangements and give private nonprofit health plans and health insurers priority to bid. Under the proposed model, current public PIHPs, county governments and community mental health organizations could be blocked from bidding as PIHPs. The presenter warned this could reduce local accountability and transparency because private managed‑care entities are not subject to obligations such as the Open Meetings Act or Freedom of Information Act, and she projected higher administrative overhead — cited at roughly 15% for private plans versus 2% for current public PIHPs — with a potential net reduction in service dollars.
Why it matters: commissioners were told the change could disrupt local coordination of mental health, substance use and developmental disability services and could lead to cuts in services available to vulnerable populations. The presenter requested the board adopt a resolution urging MDHHS and the governor to work with local stakeholders rather than move to the proposed competitive procurement.
Action and next steps: the committee voted to forward the resolution opposing MDHHS’s competitive procurement plan to the full board; the presenter said the state planned to open bidding late this summer with a target operational start date of October 1, 2026, and encouraged counties to weigh in.
Ending: Committee members expressed mixed feelings about the effectiveness of a local resolution but many voted to advance it so the full board could register the county’s position.
