A monthly public policy newsletter from the Mental Health Association in Michigan (MHAM).

Major New Section 298 Announcement from MDHHS

The state Department of Health & Human Services has made a significant new announcement about activity in the Section 298 pilots slated for October ’19. The department has released its intention for how to proceed with the management of specialty behavioral health services for persons enrolled in Medicaid but not part of a private Medicaid Health Plan (MHP); about 25%of statewide Medicaid beneficiaries are not in MHPs.
Specialty behavioral health for a beneficiary not in an MHP is presently managed by one of Michigan’s 10 Prepaid Inpatient Health Plans (PIHPs). These entities collectively contract with the state’s 46 CMHSPs.
The three pilot areas for Section 298 all have different PIHPs. Thus, MDHHS has determined some of the existing PIHPs will be invited to bid (perhaps by January) to become the PIHP for the pilot areas, working with the involved CMHSPs.
The department has stated that any PIHP with certain recent financial difficulties will not be allowed to bid; that eliminates one current PIHP. If any of the remaining PIHPs fall into the financial problem area yet this year, they would also be ineligible to bid.

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