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Board adopts resolution opposing state reprocurement of Medicaid behavioral health management
Summary
After a presentation from a Clare Community Mental Health representative, commissioners adopted a resolution urging the governor and MDHHS to halt plans to competitively reprocure management of the state's public behavioral health Medicaid contracts unless bidders have public-system experience.
The Clare County Board of Commissioners adopted Resolution No. 25-11 opposing a proposed Michigan Department of Health and Human Services (MDHHS) procurement to competitively reprocure management of Medicaid behavioral health services. County staff and a representative from the local community mental health authority told commissioners the board was acting to preserve local accountability and the publicly governed service structure.
Why it matters: presenters and the county’s community mental health representative said the current system, administered through prepaid inpatient health plans (PIHPs), supports local oversight, open meetings and long-standing relationships with community providers. The resolution urged Governor Gretchen Whitmer, MDHHS and the Legislature to halt any plans that could privatize the public behavioral health system, and to require any bidder have experience managing Michigan’s public mental health system.
Presentation and concerns. A Clare Community Mental Health representative described the agency’s concerns about disruption from reprocurement, saying the public system has operated for more than 50 years and that the public system lacks a profit motive to serve vulnerable people. The presenter provided the board with materials, including a Midstate Health Network map that shows 10 PIHPs statewide, and referenced MDHHS materials and a Michigan Association of Counties update expressing concern that procurement could ‘‘pave the way for the privatization of Michigan’s public mental health system.’’ The speaker said Clare Community Mental Health’s operating budget is about $16.5 million and that Clare County’s local appropriation to the board is approximately $39,000 annually.
Board action. A commissioner moved to approve the resolution opposing privatization and urging state officials to preserve public, locally governed behavioral health oversight; the motion passed on roll call. During discussion, commissioners asked how a reprocurement might affect local revenue streams and the distribution of tax and Medicaid dollars; presenters said Medicaid is the dominant revenue source for the PIHPs and that funding flows are subject to state and federal rules.
What the resolution requests. The resolution asks state leaders to engage counties, community mental health providers, service users and other stakeholders in strengthening the public system and to limit any procurement to public organizations with relevant experience if a process goes forward. County officials said they will forward the resolution to MDHHS and state leaders.
