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Sanilac County board adopts resolution opposing MDHHS plan to competitively procure PIHP contracts
Summary
After a presentation from Community Mental Health, the board voted to oppose a Michigan Department of Health and Human Services plan to consolidate and competitively procure prepaid inpatient health plans (PIHPs), citing loss of local control and higher administrative costs that could reduce services.
The Sanilac County Board of Commissioners voted July 15 to adopt a resolution formally opposing the Michigan Department of Health and Human Services(MDHHS) plan to implement a competitive procurement process for prepaid inpatient health plans (PIHPs).
Will Morris of Community Mental Health told commissioners the proposal would eliminate the existing 10-region PIHP structure and consolidate the state into three regions, allowing private insurers or managed-care organizations to bid. "Currently, the region runs at about 2% administrative costs. Blue Cross, 12 to 15%," Morris said, adding that on a rough $30 million regional budget that could mean about $3,000,000 taken from direct services.
Morris said the change would remove local governance and flexibility that allows county-based responses, such as crisis response tailored to rural needs. "We would be beholden to, I guess, corporate America, for lack of a better term," he said. He described county and statewide concern and noted the Michigan Association of Counties has spoken out against the proposal.
Commissioner Ballard offered the resolution, and Commissioner Lee seconded it. The resolution states that the current publicly managed, community-based PIHP system provides local accountability and community engagement and urges state leaders to halt any privatization plans and consult with counties, PIHPs and stakeholders.
Leslie (the clerk) called the roll and the board adopted the resolution. The board also heard from Morris about local outreach efforts to state legislators and cited examples of community programs that could be at risk if administrative expenses rise.
The board transmitted its resolution to the governor, MDHHS leadership and the countylegislators named in the resolution.
