Jackson County committee opposes MDHHS plan to change PIHP procurement; resolution passes
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Summary
A Jackson County committee voted to recommend a resolution opposing the Michigan Department of Health and Human Services’ proposed procurement changes to Prepaid Inpatient Health Plans, citing concerns about outsourcing, higher administrative fees and lack of disclosed analysis.
Jackson County commissioners’ committee voted to recommend a resolution opposing the Michigan Department of Health and Human Services’ (MDHHS) proposed PIHP procurement changes, a measure committee members said could shift local mental-health services to private insurers and raise administrative costs.
The resolution, drafted by Lifeways and modeled on measures adopted by other counties, passed on a roll-call vote after commissioners debated whether MDHHS had provided sufficient evidence to justify the change.
Supporters of the resolution said the change would replace locally governed arrangements with private contractors and reduce local oversight. “Should be noted that right now, we operate with about a 2% administrative fee. And going to this new system, it would go up to 15% administrative fees. That is taking services away from those who need it most,” Commissioner Snell said.
Commissioner Williams said the proposal had attracted criticism from across the political spectrum and expressed concern that outsourcing could harm service continuity: “If we can continue to work and do things at the local level … which have proven to have been working, I think [that] would be the best move for us.”
Committee members said Lifeways—the community mental health authority most directly affected—drafted the local text and that similar resolutions had been adopted in counties including Washtenaw and Nuego. Mid State Health Network, Jackson County’s PIHP, was cited during the discussion as an example of a locally governed system that committee members said provides public representation on oversight boards.
Committee members also said MDHHS has not produced requested supporting data. The chair noted that MDHHS told counties a survey showed improved service under the new model but committee members said the department had not provided the survey when asked, and that a FOIA request had not been answered.
On a roll call, the committee recorded four votes in favor and one opposed. The clerk recorded votes as: Commissioner Bair — yes; Commissioner Willis — no; Commissioner Williams — yes; Commissioner Snell — yes; Chairman Pawlowski — yes. The motion passed and will be sent to the full board with the committee’s recommendation.
Votes at a glance: The committee recorded and forwarded these items during the same meeting: the resolution opposing MDHHS’s PIHP procurement changes (recommended to full board, passed by committee vote 4–1), approval of the agenda (voice vote), approval of last month’s minutes (voice vote), and a motion to pay claims (voice vote).
