Michigan Medicaid Expansion Plan Includes 70% Cut To State Funds For Mental Health Safety Net Services

On March 14, 2014, Michigan’s public mental health authorities learned that the Healthy Michigan Medicaid “expansion” plan would reduce the general fund allocation to the community mental health (CMH) system by 72% effective April 1, 2014. The state’s supplemental budget for fiscal year 2014 cut the general fund CMH allocation from $283.6 million to $79.7 million. The general fund allocation is used for services needed by people not eligible for Medicaid and for non-Medicaid services.

The Healthy Michigan Plan received federal approval from the Centers for Medicare & Medicaid Services (CMS) on December 30, 2013 . . .