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The Michigan Department of Health and Human Services (MDHHS) rescinded its Request for Proposal (RFP) to restructure administration of Medicaid specialty behavioral health services following a January 8, 2026 court ruling. The court found that the proposed restructuring conflicted with state law governing funding for community mental health service programs (CMHSPs) and gave MDHHS three options: issue a notice of deficiency, amend the RFP, or rescind it.

The RFP, originally released August 5, 2025, represented approximately $4.9 billion in Medicaid specialty behavioral health spending. Responses were due September 29, 2025, and MDHHS had anticipated contract implementation beginning October 1 . . .

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