Michigan Governor Proposes To End Medicaid Behavioral Health Carve-Out

Michigan Governor Rick Snyder’s proposed budget for fiscal year 2017 includes a proposal to end the Medicaid behavioral health carve-out by September 30, 2017 (the end of fiscal year 2017). Currently, Michigan Medicaid behavioral health services are provided by regional behavioral health authorities that operate prepaid inpatient health plans (PIHPs) to manage Medicaid and non-Medicaid mental health specialty services, addiction treatment, and home- and community-based waiver services for people with developmental disabilities.

The proposal was introduced in Section 298 of the budget with little detail on how the state would go about changing the current Medicaid . . .