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Montcalm County commissioners urge state to release withheld mental‑health funds, oppose competitive procurement of PIHPs
Summary
After a presentation from Montcom Care Network, the county board unanimously approved two resolutions asking state officials to release withheld Medicaid mental‑health funds and to oppose competitive bidding for prepaid inpatient health plans.
Montcalm County commissioners voted May 12 to adopt two resolutions pressing state officials to release withheld public mental‑health funding and opposing a competitive procurement process for prepaid inpatient health plans.
The board approved resolution 202503, urging action to address a public mental‑health funding shortfall, and resolution 202504, opposing the Michigan Department of Health and Human Services(MDHHS) plan to put PIHPs (prepaid inpatient health plans) out to competitive bid. Both motions were moved and supported and carried by voice vote.
Tammy Warner, representing Montcom Care Network, told commissioners the agency serves people with serious and persistent mental illness in Montcalm County and is chiefly funded by Medicaid. Warner said the state has withheld funds that were appropriated in the budget and that her agency and other PIHPs have run regional deficits for multiple years. "This is why we have the PIHP," she said, describing risk reserves the state allows the regions to hold and warning there is a "risk corridor" that could ultimately affect counties if reserves run out. Warner said Mid State Health Networkholds risk reserves amounting to 7.5% of annual revenues and estimated the state withheld about $137,000,000 last year and closer to $210,000,000 this year from regional distributions.
Warner also warned the board about an MDHHS plan to seek bids for PIHP oversight, which she described as a step toward privatizing the public mental‑health system. "We are a county based mental health system," she said. "We were spun off as a stand alone authority to shield the county from risk in 1998. We are tied to the county. You appoint our board of directors, and we are here to make sure people in Montcalm County get the services they need." Warner asked the county to sign on to a statewide effort urging the department to keep the system public and local.
Commissioners discussed the effectiveness of resolutions as advocacy tools. One commissioner said lawmakers look for unified stances from local bodies, and the board proceeded to adopt both resolutions without additional amendment.
The board record shows both motions moved and supported and were carried by voice vote.
Background: Montcom Care Network is part of the Mid State Health Network regional PIHP structure that administers Medicaid mental‑health services in multiple counties. The network and several PIHPs have ongoing disputes with MDHHS over rates, reserves and contract terms; Warner said the disputes and withheld distributions have left regional agencies operating with deficits and create a potential risk corridor that could affect counties if reserves are depleted.
The resolutions (202503 and 202504) were placed in the meeting record following Warner comments and will be forwarded as official county positions to state legislators and the MDHHS.
