Michigan May Privatize Medicaid Mental Health Services Unless Counties Meet State Criteria

The Michigan Department of Community Health could privatize Medicaid services for substance abuse, mental illnesses and developmental disabilities in Detroit-Wayne and Muskegon-Ottawa counties, unless current contractors meet the department's requirements, the Detroit Free Press reports (Askari/Potts, Detroit Free Press, 6/5). The state contracts with local Community Mental Health Service Programs to administer community-based services for Medicaid beneficiaries. The contracts last for two years, and the state is reviewing proposals from the programs to continue their contracts. Last week, the community health department recommended 16 of the 18 proposals be approved. However, programs in Detroit-Wayne and Muskegon-Ottawa counties have not yet met the state's conditions. Geralyn Lasher, a community health department spokesperson, said that those programs must increase their provider networks for their contract proposals to be approved (Darryl Drevna, Kaiser Daily Health Policy Report, 6/10). Unless the programs improve and meet the state's qualifications to provide services by August, the state will begin accepting bids from private providers to oversee care. Patti Kukula, acting director of the Detroit-Wayne County program, said she is confident the agency, which oversees care for the more than 45,000 people, will meet the state's requirements and maintain control of the county's $540 million mental health budget. The Free Press was unable to obtain comment from the Muskegon-Ottawa services administrator (Detroit Free Press, 6/5).