The state is moving quickly on a new RFP while the legislature is working fast to pass a budget before their summer recess. The next few months will be busy and it is important to stay on top of all the moving pieces for a combined of Whac-a-Mole and Jenga. Pull Up Your Chair & Let’s Start the Conversation.

New RFP Being Drafted, Opposition Has Already Formed Without Knowing, “What’s Inside”

Judge Yates from the Michigan Court of Claims heard testimony from the State Attorney General and lawyers for the PIHPs in the Region 10 v. State of Michigan case, last week. The hearing was to determine whether to end this lawsuit based on the state’s withdrawal of the RFP earlier this year. During the testimony, an attorney from the Attorney General’s office stated that the Michigan Department of Health and Human Services is developing a new RFP. It is not yet publicly known what the RFP will include. However, in an email to its members the PIHP/CMHSP lobbying organization said, “it does underscore the need for us, as a group, to remain vigilant and prepared to oppose another threat to our system.” This could include additional litigation following the release of the RFP, specifically if the Department decides to reduce the number of regions. Look for a court order in the next week, dismissing this case and for the MDHHS to issue an RFP in the next few weeks with a potential implementation date of 10/1/2027. Watch the hearing here on YouTube.

The House Medicaid & Behavioral Health Appropriations Subcommittee voted out their FY27 budget recommendations on Thursday April 16, as HB 5607. Find the House Fiscal Analysis to HB 5607, here. You can access all the budget documents via the House Fiscal Analysis Office. Watch the 4/16/26 hearing here on YouTube. The Full House Appropriations Committee will most likely vote on this bill when they meet Wednesday, and the full House will likely take this up on the floor of the House by the end of April or early May.

Michigan House Oversight Report Details Capacity Constraints & Access Barriers in Behavioral Health System

A report from the Michigan House Oversight Subcommittee on Public Health and Food Security outlines ongoing capacity and access challenges within Michigan’s behavioral health system, citing staffing shortages, limited-service availability, and administrative constraints. Based on testimony from providers, judges, and health officials, the report states that Michigan ranks 47th nationally in psychiatric bed availability, with approximately 19 beds per 100,000 residents compared to a recommended 30. Subcommittee Chair Matthew Bierlein indicated the findings reflect system strain, including increased reliance on jails and court systems for individuals needing psychiatric care. The report attributes current conditions in part to the closure of state psychiatric facilities in the late 1990s without corresponding expansion of community-based infrastructure, resulting in greater demand on emergency departments and local providers. Testimony also identified regulatory and structural factors, including Medicaid-funded regional plan limitations and certificate-of-need requirements, as constraints on service expansion. Additional findings note regional disparities in access, particularly in northern parts of the state. Recommendations in the report include reducing administrative requirements, increasing workforce investment, improving data systems, and establishing a behavioral health campus in northern Michigan. Read the House Oversight Report here. Source: MIRS

Dive Deeper: Mental health advocates 'optimistic' about reforms in Michigan, Bridge Magazine; 'Beyond a crisis point': Michigan House report outlines issues in mental health system, WWMT

Mental Health Parity Index Highlights National Disparities in Access + Reimbursement

A new national Mental Health Parity Index provides data on how mental health and substance use disorder treatment compare to physical health care across the country, offering a resource for insurers, employers, policymakers, and consumers. The tool was developed by The Kennedy Forum in collaboration with Third Horizon, American Medical Association, American Psychological Foundation, and Ballmer Group. Findings across the nation’s four largest commercial health insurers indicate that in 43 states, enrollees may face disparities in accessing in-network mental health and substance use disorder services compared to physical health care. At the county level, approximately 70 percent of counties show similar patterns. The Index also reports that all 50 states have lower reimbursement levels for outpatient mental health and addiction treatment than for outpatient physical health services. The dataset provides a national and local view of network access and payment differences across behavioral and physical health care. Explore the Mental Health Parity Index and see your state’s data, or share the tool with your networks. Read more at Politico, Fierce Healthcare, Becker’s Hospital Review and Insurance Business to see what others are saying about the tool. Source: Kennedy Forum.

State & Local Collaboration Advances Drug Recovery Housing Project in Kalamazoo

State and local officials joined project partners to mark the groundbreaking of a new drug recovery housing development in Kalamazoo, reflecting a multi-agency effort to expand supportive housing for individuals recovering from substance use disorders. The 48-unit William Schma House—named after a retired circuit court judge associated with early drug treatment courts—will be built on a remediated former industrial site and located near key public services. The Michigan Department of Health and Human Services contributed $2.3 million from opioid settlement funds, while the Michigan Department of Environment, Great Lakes, and Energy provided additional support for site cleanup, including a $1 million brownfield redevelopment grant. The Michigan State Housing Development Authority awarded $12 million in low-income housing tax credits over 10 years, with rents capped at 30 percent of resident income. Project stakeholders noted the role of stable housing in supporting recovery outcomes and identified ongoing challenges, including community opposition, funding gaps, and broader constraints in affordable housing development. Source MIRS.

Critics say Michigan’s addiction treatment locator plagued by access and data issues, Ottawa News Network

Medicaid Bulletin MMP 26-13 discusses Children’s Home and Community-Based Services Waiver (CWP) and is issued on April 16, 2026. This bulletin is being sent to Prepaid Inpatient Health Plans (PIHP), Community Mental Health Services Programs (CMHSP), Medicaid Health Plans (MHP). Final Bulletin MMP 26-13-Correction.pdf

Michigan League for Public Policy - Public Policy Forum, April 30, 10AM, Lansing Center, Register here