The Michigan Legislature Considering Changes To The Medicaid Behavioral Health Carve-Out

The Michigan Legislature is conducting hearings on two packages of bills that would change the state’s Medicaid behavioral health carve-out. One package focuses on integrating Medicaid payments for behavioral health and physical health into the state’s Medicaid health plans. The other focuses on establishing a single statewide entity to provide behavioral health administration and oversight.

Senate bills SB 0597 and SB 0598 would shift payment for specialty behavioral health services from the 10 current public prepaid inpatient health plans (PIHPs) that manage public behavioral health benefits to the state’s Medicaid health plans for physical health care . . .