LANSING, MI (WOWO) A Michigan judge has raised significant legal concerns about the state’s plan to overhaul how Medicaid-funded mental health services are managed. The Michigan Court of Claims ruled this week that the Department of Health and Human Services’ request for proposals to bid out man agement of the state’s $4.9 billion behavioral health system conflicts with Michigan law. The ruling affects a restructuring plan that would change how services are administered for more than 300,000 residents statewide. Judge Christopher Yates determined the bid process contains multiple conflicts with the state’s Mental Health Code, particularly in how funding would flow to Community Mental Health Service Programs. Those programs are local agencies responsible for coordinating care through networks of providers. While the court did not order the state to withdraw its request for proposals, Yates said any modifications must ensure local agencies receive sufficient Medicaid funding to meet their legal obligations. He noted that Medicaid dollars are critical to maintaining provider networks and delivering mandated services. The Michigan Department of Health and Human Services told Bridge Michigan it is reviewing the decision. The legal challenge was filed last August by several regional mental health agencies after the state announced plans for a competitive procurement process. The proposal would reduce the number of regional Prepaid Inpatient Health Plans, known as PIHPs, from 10 to three, with changes scheduled to take effect in October. State officials say the restructuring is intended to improve access to care and increase consumer choice. Critics argue the plan would weaken local oversight and reduce the role of agencies accountable to elected officials. Supporters of the lawsuit say the ruling correctly identifies legal flaws in the proposal. Leaders representing health insurance providers, however, warn the decision could delay improvements to Michigan’s mental health system. Michigan has operated under a managed care model for behavioral health services since the 1990s, with previous reductions to the PIHP system occurring in 2014. Further reforms proposed in recent years have not advanced. The post Michigan Mental Health Overhaul Faces Legal Hurdle appeared first on WOWO News/Talk 92.3 FM and 1190 AM. ...read more read less