The Mental Health Framework catches the attention of private providers

The private behavioral healthcare community raises their own concerns as the state-designated assessment tools echo many of the same concerns our members share, as staff burnout and administrative inefficiencies continue to exacerbate practitioner shortages-Not make it better.

Pause and revise mandatory MichiCANS/LOCUS rollout for Medicaid

Listen to latest ‘Connections’ Podcasts 

Real voices. Real journeys. Discover the stories that connect us. Hear powerful conversations that bring our community together and inspire better lives for all.

Theresa’s dynamic presence and energetic voice reflect her passion for her work, which is marked by vitality and empowerment. Through her role at Crim, she engages deeply with the community, helping to strengthen and uplift individuals. Her programs are designed with integrity, meeting people where they are and providing accessible resources and support to foster resilience and growth. Listen Here.

Critics say Michigan’s addiction treatment locator plagued by access and data issues

Below is an excerpt from a recent news story regarding concerns around the MDHHS addiction treatment locator tool.

A group of individuals working in addiction treatment and health policy are calling on the Michigan Department of Health and Human Services to overhaul its addiction treatment location tool, citing concerns with its accessibility and accuracy.

Members of the Opioid Policy Institute and the Michigan Society of Addiction Medicine presented their concerns to the Michigan House Oversight Subcommittee on Public Health and Food Safety in February, though Jonathan Stoltman, the institute’s director, has continued to raise questions about the quality of the platform, as well as the state’s decision to promote the tool.

The full article can be found here.

The second of two cycles under the Health Fund’s 2026 Capacity Building Initiative is now open and accepting concept papers

This program supports health-focused nonprofits in their efforts to become stronger organizations and improve their collaborative partnerships. Concept papers are required and due May 14 at 5 p.m. (ET).

Cycle 2 is open to tax-exempt organizations — including nonprofits, federally recognized Tribes, and local units of government — working to improve health for Michigan communities. Visit our Capacity Building page to view the RFP and our recent webinar sharing program priorities and application details.

The RFP and grant application materials can be found here.

Local Governments Play An Important Role In Medicaid Financing

Below are excerpts from a recent Health Affairs blog post underscoring the unique role that local governments play in financially supporting their local Medicaid services.

Medicaid is jointly financed by the federal government and states, but local governments also play a significant role as they help contribute to the state’s share of Medicaid. While funding for the federal share is fairly straightforward—it comes from federal tax revenue—the state share’s actually comprises three different buckets: state general funds; health care-related provider taxes; and local government funds.

Given these different buckets of funding available to states, the term “non-federal share” is actually the most appropriate since some of the funding comes from both providers and local governments, such as counties. Medicaid law requires that at least 40 percent of the non-federal share be financed by the state, with up to 60 percent coming from local governments. According to the Medicaid and CHIP Payment and Access Commission (MACPAC) 68 percent of the non-federal share in state fiscal year 2018 comprised state general funds, 17 percent came from health care-related provider taxes, and 12 percent came from local governments. With three available pathways, financing Medicaid’s non-federal share seems fairly solid—like a dependable, three-legged stool. But when you start making changes to those legs, the stool becomes less sturdy and more likely to topple over.

The full article can be found here.

Federal Work Requirements

As we anticipate challenges relative to H.R. 1, a better understanding of the exceptions that individuals may qualify for would assist us in “weathering the impending storm” and advocating for those we serve and care about. Included is an article from the Center for Healthcare Strategies which provides a good understanding of Federal Medicaid Work requirements that states must implement by January 1, 2027.

CMHA editorial critical of Mental Health Framework

Recently, the Detroit News carried an editorial from Alan Bolter, CMHA’s Incoming CEO, providing a critique of the MDHHS Mental Health Framework. This editorial is part of the work by CMHA and its members and allies to halt this initiative and work, collectively with MDHHS and stakeholders to continue to build on the strengths of Michigan’s nationally recognized public mental health system. This editorial is available here.

Michigan kids sent out of state to receive proper treatment

CBS News affiliate reports on the growing concern for suitable Mental Health Treatment options available for youth in SOM. This article, Michigan kids in mental health crisis sent out of state as facilities close, discusses the lack of resources to treat them here at home.

MDHHS Loan Repayment program intended to expand access to SUD treatment for Michigan residents

As part of continuing efforts to increase access to substance use disorder (SUD) treatment, the Michigan Department of Health and Human Services (MDHHS) is accepting applications for the Michigan Opioid Treatment Access Loan Repayment Program through Thursday, April 30. This program is open to providers who begin offering or expand opioid addiction treatment programs.

Listen to latest ‘Connections’ Podcasts 

Real voices. Real journeys. Discover the stories that connect us. Hear powerful conversations that bring our community together and inspire better lives for all.

Nadine Carlson, Co-Founder, Coach, and Consultant for Care Provider Solutions, supports Adult Foster Care (AFC) owners in reducing stress, from licensing to running compassionate homes. Drawing on her experience operating award-winning AFC homes, she now helps others through mentorship, practical systems, and a supportive community inspired by her passion for teaching and improving care. Listen Here.

MDHHS clarifies lighter-duty assessments required for Mental Health Framework

MDHHS recently issued policy bulletin MMP 26-01 which is effective October 1, 2025 and establishes standardized mental health assessment requirements for mental health providers who serve beneficiaries enrolled in a Medicaid Health Plan (MHP).

The State’s designated assessment tools are the Michigan Child and Adolescent Needs and Strengths (MichiCANS) Screener for children and youth (under 18) and the Level of Care Utilization System (LOCUS) for adults (18 and older).

MichiCANS Screener: The MichiCANS trainings for MHP network providers differ from trainings required for providers employed or contracted with a Prepaid Inpatient Health Plan (PIHP), Community Mental Health Service Provider (CMHSP) or Certified Behavioral Health Center (CCBHC). For an overview of the difference in trainings visit MichiCANS Internal Trainings.

Utilize these instructions to obtain access to the MichiCANS tool, within Care Connect 360. To obtain access, providers must be enrolled in CHAMPS and have fully completed the MichiCANS Screener training.

LOCUS Training: Access the MDHHS LOCUS Assessment Page here. The assessment will be submitted directly from this webpage to MDHHS upon completion. Providers must be fully trained as well as have an NPI to be able to login to complete the assessment. See these instructions for information on logging into the LOCUS tool.

Reminders: Only enrollees newly seeking mental health services should be assessed using the MichiCANS Screener or LOCUS when initially presenting or seeking mental health services. 

For current enrollees receiving mental health services, providers should complete the required assessment as soon as possible but does not have to be within the immediate next visit/service.

The MHPs should not be denying claims for Mental Health services delivered prior to assessment completion.  

DCW coalition issues revised one-page advocacy tool

Weekly Update readers may remember that the Direct Care Worker (DCW) Coalition, of which CMHA is a longtime member, issued an analysis that underscored the fact that the underfunding of the state’s CMHSPs and PIHPs has been a significant impediment to their ability to fully fund the DCW wage increases intended for FY 26 (appropriations-required wage increase and minimum wage related increases).

This analysis has been revised to more accurately reflect the funding gap resulting from an insufficient appropriations line in the FY 26 MDHHS budget. That new analysis can be found here.

AI marches right into the mental health field, despite some calls for caution 

A recent news story, from NPR, highlights the range of mental health arenas in which AI is becoming a larger component. That news story can be found here.

Alcohol Awareness and Underage Drinking Prevention Month resources

April has been proclaimed Alcohol Awareness and Underage Drinking Prevention Month in Michigan.

The proclamation of that designation can be found here: Alcohol Awareness and Underage Drinking Prevention Month Proclamation.

To learn more about Alcohol Awareness Month:

Substance Abuse and Mental Health Services Administration (SAMHSA): Alcohol Prevention Month
National Institute on Alcohol Abuse and Alcoholism (NIAAA): Alcohol Awareness Month

Use of Ai Software in Michigan for FOIA responses

This recent article, State making questionable use of AI software for FOIA responses, featured in the Detroit Free press, attempts to investigate the FOIA review tool available to state agencies through a Michigan Attorney General’s Office contract with Epiq eDiscovery Solutions, Inc. of Kansas City.

House Dems Outline Their Priorities

The “Vision for a Brighter Michigan” is a policy framework developed by Michigan House Democrats that outlines a set of priorities intended to guide legislative efforts and public policy in the state.

The initiative focuses on several key areas, including affordability, healthcare, education, and economic development, and is presented as a long-term strategy shaped by public input.

The initiative was introduced as part of an effort to define policy goals and engage residents in discussions about the state’s future. According to its description, the plan is informed by feedback gathered through community meetings, surveys, and outreach efforts across Michigan. The stated objective is to identify shared concerns among residents and translate them into legislative priorities.

Affordability: One of the central components of the vision is addressing the cost of living. The framework highlights issues such as housing, childcare, and everyday expenses. Proposed approaches focus on reducing financial strain on households and improving economic stability, though specific policy mechanisms may vary.

Healthcare Access: The plan also emphasizes expanding access to healthcare services. This includes improving affordability and availability of care, as well as supporting programs aimed at public health outcomes. Examples referenced in the initiative include efforts to support maternal and infant health.

Education and Workforce Development: Education is identified as a major area of focus, with an emphasis on strengthening public schools and expanding opportunities for job training. The framework links educational investment to workforce readiness and economic growth, suggesting that improved access to education can support both individual and statewide outcomes.

Economic and Community Development: The initiative includes goals related to economic growth and community investment. These involve supporting local businesses, improving infrastructure, and promoting development across different regions of the state. The framework highlights the importance of both urban and rural communities in overall economic planning.

The “Vision for a Brighter Michigan” serves as a policy outline that identifies several areas of focus for future legislative activity. By centering on affordability, healthcare, education, and economic development, the initiative provides a structured overview of proposed priorities. Its emphasis on public input reflects an effort to align policy direction with the concerns and experiences of Michigan residents.

Trump Administration Releases FY27 Budget Request

On April 3, the Trump administration began rolling out its FY2027 budget request, releasing a series of materials outlining its funding priorities, including the full Budget Request, a topline factsheet, and detailed HHS documents such as the Budget Appendix, Budget in Brief, and Congressional Justification for the Administration for a Healthy America (AHA) initiative.

The proposal requests $111.1 billion in discretionary budget authority for the Department of Health and Human Services (HHS), representing a $15.8 billion—or 12.5 percent—reduction from the FY2026 enacted level. Despite this decrease, the FY2027 request is notably higher than the administration’s FY2026 proposal of $94.7 billion, suggesting a partial recalibration of funding levels while still emphasizing overall spending restraint.

The inclusion of materials tied to the Administration for a Healthy America (AHA) signals continued focus on restructuring and prioritizing key health programs under this initiative. However, specific program-level impacts will depend on further analysis of the detailed budget justification documents.

As with all presidential budget submissions, the FY2027 request is nonbinding and primarily serves as a policy and messaging framework reflecting the administration’s priorities. Congress will ultimately determine final funding levels through the appropriations process, using the president’s proposal as one of several inputs in negotiations.

Meanwhile, Congress adjourned for a two-week recess on March 27, while the partial government shutdown impacting the Department of Homeland Security (DHS) continues. The House may vote Monday on a Senate plan to fund most DHS agencies and programs. Before adjourning, some House Republicans began floating the idea of a second reconciliation bill to pay for various administration policy priorities — including DHS priorities left out of the Senate bill — and President Trump has asked that a reconciliation bill be passed by June 1. Congress may reduce spending for health care programs to pay for new spending in any reconciliation bill. However, it is still unclear exactly which programs may be impacted and what the path forward could look like, and such reductions will likely not be as wide-ranging as those seen in H.R.1.

DHHS says loan repayment program has helped 200 substance abuse treatment providers

Providers offering or expanding opioid addiction treatment programs have received $3.7 million in loan repayment assistance and treated an additional 8,000 clients through a Department of Health and Human Services program.

DHHS is accepting applications for the Michigan Opioid Treatment Access Loan Repayment Program through April 30. The program has previously provided assistance to 202 providers, a press release said.

“Michigan has made great strides in reducing overdose deaths through significant investments in prevention, harm reduction, treatment and recovery services,” DHHS Director Elizabeth Hertel said in a statement. “However, SUD workforce shortages can limit access to treatment. Through this program, we have been able to treat an additional 8,000 opioid use disorder clients and provide $3.7 million in loan repayment assistance to 202 providers.”

The National Survey on Drug Use and Health estimates 1.3 million residents need treatment for substance use disorder but are not receiving it.

DHHS has identified workforce shortages as a key cause of the gap. Michigan currently ranks 40th in the number of SUD counselors per adult with an SUD. This shortage, in part, is due to high costs and barriers to education and certification.

Through the loan repayment program, providers may be eligible for student loan repayments of between $15,000 and $30,000. It is available to medical and osteopathic medicine doctors, psychiatrists, nurse practitioners, physician assistants, case managers and SUD counselors who begin offering opioid treatment or expand treatment that is already being offered. Providers who work in a variety of health care settings are eligible to apply.

The program is funded through the Michigan Opioid Healing and Recovery Fund. Michigan is slated to receive more than $1.8 billion from national opioid settlements by 2040, with half being distributed to the state and half to local governments.

CCBHC April Newsletter

The April CCBHC Newsletter is now available! Download it here or access it directly on the CCBHC webpage under Newsletter Archives.

Michigan Technology First Task Force

CMHA was recently asked to help move technology forward across Michigan by taking part in a statewide plan to put Technology First into action. As a result of a Health endowment grant, Tech first is now established. We look forward to this work and being considered to take part in such an innovative approach to care.

What is technology first?

Tech first is a philosophy of practice that aims to leverage technology to assist individuals with developmental and intellectual abilities. Many people in Michigan with aging and developmental disabilities face challenges with everyday tasks, school, and finding or keeping a job. Technology that offers step-by-step help or two-way communication can make daily life easier and more independent. For example, these tools can help someone feel safer at home, learn how to make a meal, or use public transportation. With this support, more people in Michigan can take part in their communities and live the lives they choose.

Learn More: Task Force  |  Michigan Tech First

Protect MI Care Toolkit

This toolkit has sample social media posts, newsletter content, talking points, and graphics that you can use. Please share these resources on social media, especially the content that focuses on collecting personal impact stories. These stories will help drive our success during the budget negotiations throughout the spring.

You can access the toolkit here.

Urban Institute projects large Medicaid enrollment reductions in Michigan

The Urban Institute recently issued a report, “Projected Reductions in Medicaid Expansion Enrollment Under OBBBA’s Work Requirements and Six-Month Redeterminations” which echoes the findings of others related to the dramatic number of Americans and Michiganders who will lose Medicaid coverage as a result of the federal HR1.

The full report can be found here.

Annual Direct Care Worker survey report issued

Weekly Update readers may remember that the Michigan Assisted Living Association (MALA) and incompass-Michigan conduct a survey of the employers of DCW employees across the state of Michigan. The survey is designed to provide a picture of the wage levels, turnover rates, and other workforce information relative to Michigan’s behavioral health DCW workforce. One of the aims of this annual survey is to underscore the depth and scope of the behavioral health DCW workforce crisis.

This year’s survey results can be found here.

CSH blog: concrete steps that states can take related to “medical frailty” eligibility to retaining Medicaid coverage

Those Weekly Update readers who attended CMHA’s Winter 2026 Conference may remember the keynote address provided by our colleagues within the Homeless and Housing Office of MDHHS and the Corporation for Supported Housing (CSH).

Recently, CSH announced a blog designed to assist organizations, including CMHA members, who are developing approaches to ensure that Medicaid beneficiaries retain their Medicaid eligibility. This blog focuses specifically on the “medical frailty” components of Medicaid eligibility under HR1.

Below are excerpts from the CSH announcement of this blog and a link to the blog.

H.R.1—the “One Big Beautiful Bill”—makes significant changes to Medicaid and creates new barriers to health insurance coverage for people who rely on the program.

At CSH, our goal remains the same: continuous healthcare coverage for everyone who qualifies under the new law. When coverage lapses and people become uninsured, they face significant challenges accessing needed health care, medications, and supportive services. Losing coverage also makes it far more difficult to access treatment and maintain recovery. 

This blog focuses on one strategy states can use to help eligible individuals keep their coverage: the “Medical Frailty” designation.

Read our blog to learn concrete steps that states can take to protect Medicaid coverage using the Medical Frailty designation. 

This blog can be found here.

85 House Members Have Filed or Intend to File For Reelection

With the filing deadline three weeks away, 85 of the 110 House incumbents have either filed for reelection or have indicated that they plan file. Under the state’s new term limit law allowing House members to serve six two-year terms, nobody currently serving in the House is in a position to be pushed out of office by the constitutional amendment.

A combined 14 House members have announced for the state Senate, one is running for Congress, six are declining to seek reelection without any immediate plans to seek another political office and the plans of four others were not able to be verified today.

The 14 who have announced plans to run for the state Senate include: Reps. Tullio LIBERATI, JR. (D-Allen Park), Natalie PRICE (D-Berkley), Erin BYRNES (D-Dearborn), Jason HOSKINS (D-Southfield), Matt KOLESZAR (D-Plymouth), Julie ROGERS (D-Kalamazoo), Donni STEELE (R-Lake Orion), Douglas WOZNIAK (R-Shelby Township), Gina JOHNSEN (R-Portland), Phil SKAGGS (D-Grand Rapids), Carol GLANVILLE (D-Grand Rapids), Matthew BIERLEIN (R-Vassar), Joseph FOX (R-Fremont) and Dave PRESTIN (R-Cedar River)

Rep. Donavan MCKINNEY (D-Detroit) is the only House member to have announced for the U.S. House.

The six who announced they are not running for reelection and have no immediate plans for another office are: Reps. Karen WHITSETT (D-Detroit), Joe TATE (D-Detroit), Regina WEISS (D-Oak Park), Kara HOPE (D-Holt), Luke MEERMAN (R-Coopersville) and Bryan POSTHUMUS (R-Rockford).

Supreme Court Will Hear Lawsuit Over 9 Lame Duck Bills At May Session

The Michigan Supreme Court will hear oral arguments in May on whether the state House is required to send nine bills from a previous legislative session to the Governor.

The court has ordered both sides to submit any supplemental briefs within 28 days, and has invited those who earlier filed amicus briefs to also submit updated briefs.

The nine bills — HB 4177, HB 4665, HB 4666, HB 4667, HB 4900, HB 4901, HB 5817, HB 5818 and HB 6058 of 2024 — would allow corrections officers to join the state retirement system, lift the caps on how much money public employers can spend on workers’ healthcare benefits, help raise money for the Detroit Historical Museum and create new protections for debtors going through bankruptcy.

The Senate filed the lawsuit in February 2025, and the Court of Claims sided with the Senate, but did not order House Speaker Matt HALL (R-Richland Township) to forward the bills to the Governor’s office.

In October, a divided Michigan Court of Appeals panel held the House has a “clear constitutional duty to present” the bills to Gov. WHITMER.

Starting June 16th: Sustainability Academy: Beyond the Grant – Planning and Data Storytelling for Fund Diversification

The Sustainability Academy helps program staff plan beyond time-limited federal funding and build a clear strategy for long-term program sustainment. Serving up to 30 participants, the academy integrates CMHIS Sustainability tools and provides individualized coaching to develop actionable approaches for funding diversification, partnership and policy alignment, and data-driven storytelling. Participants engage in large‑group training, small‑group practice, and individual coaching while using established sustainability tools. The facilitation team brings expertise in implementation, CQI, evaluation, and fundraising, offering practical examples and case studies throughout.

June 16, 30, July 14, 28, August 11, 25, September 8, and 1 hour of individual coaching scheduled directly with the presenters.

All sessions will take place from 1:00 PM–2:00 PM CT / 2:00 PM–3:00 PM ET. 8 CEs available.

Apply here: Sustainability Academy: Beyond the Grant – Planning and Data Storytelling for Funding Diversification

Starting June 2nd (Applications required and due by May 15th- limited spots available)

The Clinical Supervision Learning Community is a 7-month, expert-led program designed for clinical supervisors working in fast-paced, resource-limited community mental health settings. This unique opportunity combines interactive training, individualized coaching, and peer learning to help supervisors implement evidence-based practices (EBPs) while fostering workforce resilience and retention.

Why is this important?

Implementation science demonstrates that successful adoption and sustainability of EBPs require more than initial training—they depend on structured, ongoing support. Clinical supervision is one of the most effective implementation strategies for bridging the gap between research and practice. Supervisors act as key “implementation champions,” reinforcing fidelity, troubleshooting barriers, and promoting continuous quality improvement. Without supervision informed by these principles, EBPs often fail to translate into consistent practice, leading to diminished effectiveness and staff burnout.

This program leverages proven implementation strategies—such as coaching, data-driven feedback, and responsive adaptation—to ensure that evidence-informed practices are not only learned but consistently applied and sustained over time. A recent study demonstrated evidence that supervisors who used effective strategies in supervision had stronger relationships with supervisees, which, in turn, were associated with lower supervisee intent to leave their position. Participants will gain practical tools to align supervision with licensure standards, foster reflective practice, and build resilience within their teams.

Program Highlights:

3-hour initial training plus 3 individual and 6 group coaching sessions
Total commitment: 18 hours over seven months
Small cohort of 6–8 peers for meaningful engagement
18 CE credits available

Apply here: Clinical Supervision Learning Community

Direct Care Worker Wage Coalition issues analysis of funding gap

As Weekly Update readers may remember, CMHA is part of a large coalition working, for the past several years, to improve the wages to Michigan’s direct care workers (DCW) – in behavioral health, IDD, and aging services arenas.

This group recently developed an analysis, using data provided by CMHA and a number other coalition members, which highlights, in concrete terms, the financing gap at the heart of the difficulties in fulfilling the aims of the DCW wage increase and the state’s recently adopted minimum wage changes. This analysis, which we urge you to use (as will CMHA and coalition) in your discussions with legislators, staff, providers, persons served and families, and other stakeholders. This analysis can be found here.

Medicaid advocacy tools and health care financing analysis issued

The Protect MI Care Coalition, of which CMHA is a longtime member, and the Center for Health and Research Transformation, a longtime partner of CMHA, recently released resources around Medicaid advocacy and analyses of health care coverage changes in Michigan.

Protect MI Care Toolkit: This toolkit has sample social media posts, newsletter content, talking points, and graphics that you can use. Please share these resources on social media, especially the content that focuses on collecting personal impact stories. These stories will help drive our success during the budget negotiations throughout the spring. You can access the toolkit here.

Center for Health and Research Transformation (CHRT): We greatly appreciated the presentation from CHRT this morning on their new brief on Michigan’s healthcare landscape between 2008 and 2024. They will issue several more briefs in the coming weeks, and we will be sure to share them with this group. You can access their first brief, which was published earlier this week, here.

Michigan League for Public Policy announces 2026 Public Policy Forum

The Michigan League for Public Policy (MLPP), a longtime partner of CMHA, has recently announced the speakers and guests for the Michigan League for Public Policy’s 2026 Public Policy Forum! Register today to be part of this important conversation about creating a bold path forward for economic justice and democracy. 

This year’s theme is 250 Years and Counting: Working to fulfill the promise of democracy in America. As the nation celebrates the 250th anniversary of the Declaration of Independence, democracy is still an unfulfilled dream, and at the forum we will discuss history and explore policy solutions that ensure a brighter future for Michigan’s kids and families.  

MDHHS issues guidance on provision of Housing Assistance services

Recently, MDHHS issued a memo and an FAQ document regarding Housing Assistance services and guidance on the Medicaid codes used to record those services. The cover memo can be found here. The FAQ document can be found here.

MDHHS issues Mental Health Framework assessment bulletin

As part of the Michigan Department of Health and Human Services (MDHHS) Mental Health Framework (MHF) Initiative, MDHHS recently issued a Michigan Medicaid Policy (MMP 26-01) bulletin has been released regarding the standardized mental health assessment requirement under this Initiative.

These requirements apply to mental health providers who serve beneficiaries enrolled in a Medicaid Health Plan.  Please visit the following link: Final-Bulletin-MMP-26-01-BH for more detailed information. 

Standardized Assessment training is now available for free for Medicaid Health Plan providers and is eligible for CME/CEU credit (details vary between each training). 

For additional information on the Mental Health Framework Initiative, including information regarding receiving the necessary training for these standardized assessment tools, please visit Mental Health Framework.

If you have further questions, please contact us at MDHHS-MentalHlthFramework@michigan.gov

MDHHS seeking comments on proposed BHT for autism services

The following proposed policy has been issued for public comment:

2613-BCCHPS – Update to Behavioral Health Treatment (BHT) Requirements for Autism Services. The proposed policy can be found here: 2613-BCCHPS-P

Comments may be forwarded to Mary Luchies at luchiesm@michigan.gov

MDHHS seeking comments on proposed policy on enrollment of clinicians to provide assessments

The following proposed policy has been issued for public comment:

2554-BH – Enrollment of Limited Licensed Non-Physician Behavioral Health Providers and Updated Billing Requirements; Updates to FFS Program Billing of Level of Care Utilization System (LOCUS) and Michigan Child and Adolescent Needs and Strengths (MichiCANS) Screener Assessments. The proposed policy can be found here: 2554-BH-P

Comments may be forwarded to Adriena Krul-Hall at krulhalla@michigan.gov

US House and HHS announce focus on Medicaid Fraud 

The US House Energy & Commerce Committee is holding a hearing tomorrow entitled Protecting Patients and Safeguarding Taxpayer Dollars: The Role of CMS in Combatting Medicaid & Medicare Fraud.

Prior to this hearing, E&C Committee Republicans sent letters to California, Colorado, Massachusetts, Maine, Nebraska, New York, Oregon, Pennsylvania, Vermont, and Washington requesting details the state is taking to strengthen program integrity. It details issues with ABA therapy programs and non-emergency medical transportation (more on that later). 

Background

On February 25th, CMS announced a major crackdown on health care fraud.

Preceding Paragon Report: Prior to the CMS announcement and E&C Letters, on February 17th a policy commentary co-authored by the former White House health policy lead in the first Trump Administration was published and highlights “four areas ripe with improper payments and fraud“:

Home- and Community-Based Services (HCBS) 
Non-Emergency Medical Transport (NEMT)
Applied Behavioral Health Analysis (ABA) for Autism Spectrum Disorder
Substance Use Disorder (SUD) Services and Treatment Centers 

Audit: MDHHS Lacks Oversight On Pharmacy Benefits Manager; MDHHS Disagrees

The Department of Health and Human Services (DHHS) disagrees with the findings in an Office of Auditor General (OAG) report released today that says there is a lack of contract oversight over pharmacy benefits manager (PBM).

The Department of Health and Human Services (DHHS) disagrees with the findings in an Office of Auditor General (OAG) report released today that says there is a lack of contract oversight over pharmacy benefits manager (PBM).

The audit found the contract between DHHS and Prime Therapeutics State Government Solutions, LLC, lacked details and records of how the state monitors the contract. There was no independent verification of whether the contractor was complying with stated requirements. 

The audit found both were top violations of protocol because, “noncompliance with state procurement policies designed to ensure effective use of public funds,” and the PBM was a “high risk” contract with the state.

The total pharmacy benefits manager contract value is approximately $82 million for the roughly seven-and-a-half-year period ending Sept. 30, 2026. The PBMs are also being looked at by the House Subcommittee on Public Health and Food Security.

DHHS spokesperson Lynn SUTFIN said the department disagrees that the findings in the audit rise to the level of noncompliance. “DHHS is committed to ensuring taxpayer dollars are spent appropriately and that contractors fulfill their obligations through a variety of monitoring processes,” Sutfin said.

She said the department monitors the contract and submits documentation of those monitoring activities to the auditors if any instances of noncompliance with state rules come up from complaints against the vendor.

“The OAG failed to demonstrate any instance where MDHHS was negligent in safeguarding state funds, the lives of the beneficiaries it serves or state procurement policies and guidelines. Their findings instead focus on a narrow topic related to the Contract Monitoring Plan and surveys in which MDHHS has limited responsibilities,” Sutfin said.

She said the contractor’s performance was measured through looking at pharmacy reimbursements, regulatory compliance and data security, as well as quarterly, monthly and surprise desk reviews.

“These reviews resulted in assessing $42,162.24 in related service credits during the audit period.  Furthermore, MDHHS contract oversight and monitoring identified $30,000 in service credits independent of the monthly performance report card (service level agreements) monitoring,” she said.

She said all the reporting and system access to verify the contractor’s performance is done in real-time. The audit said they had considered the response returned by MDHHS, but said their findings stood.

Senate vote on social media regulation for minors bill package delayed until after spring recess

Legislation in the Michigan Senate that would impose stricter regulations on social media access for minors is still being developed, as lawmakers continue working with stakeholders.

Legislation in the Senate that would enact stricter regulations governing social media access for minors still needs further work with stakeholders and Republicans before it can be taken up, a bill sponsor told reporters on Wednesday.

Potential changes will be discussed over the coming weeks, and the bills may return to the floor sometime after the Senate returns from its spring recess, Sen. Darrin Camilleri, D-Trenton, said Wednesday.

Camilleri told reporters following session the bills were not voted on Wednesday because discussions about further changes to the bills are ongoing.

He added that there were also two members absent Wednesday, one from each party. Camilleri said there was bipartisan support for the package in committee, and he would like to build further Republican support after the legislative break prior to taking the vote.

“We want to make sure that all of our members can be part of that conversation,” Camilleri said. “This is not something that I think should be partisan. It has not been out of committee. Let’s make sure we get it right.”

Camilleri said lawmakers want to make sure they get their bills right, given that similar legislation has been challenged and held up in courts in other states.

“We’ve made various changes for different industries, different apps that are not specifically the target of this type of legislation, and so … we want to make sure that all of T’s are crossed and our I’s are dotted,” Camilleri said.

The first bill in the package, SB 757, would create a Stop Addictive Feeds Exploitation for Kids Act, which is intended to ban social media platforms from pushing addictive, data-driven feeds to minors without parental approval. It would also ban social media platforms from sending notifications to minors during the evening hours and during certain weekday daytime hours during the months that schools are in session.

Two further bills, SB 758  and SB 759, would beef up data privacy protection for minors.

The final bill, SB 760, would create a Leading Ethical AI Development for Kids Act. This would block minors from accessing AI chatbots. The intent is to prevent access to AI chats that direct minors toward illegal activities, consumption of drugs or alcohol, violence or sexually explicit interactions.

2026 Wraparound Conference-Call for Presentations

Submit your workshop electronic form by 5pm on FRIDAY, April 3, 2026. CMHA will use the information requested in this form to assure appropriateness of content, to assess whether the presentation meets criteria for social work “Continuing Education Clock Hours,” and/or substance abuse professional certification “Contact Hours” and to develop program descriptions.

Wraparound In Action: Putting the Pieces Together
August 3-5, 2026   |    Radisson Plaza Hotel & Suites    |    Kalamazoo, Michigan

Motivational Interviewing and Trauma-Informed Care Trainings

New date added! For more information and to register for the Sept. 1-2, 2026 virtual training, click here.

For more information and to register for the June 15-16, 2026 virtual training, click here.

Questions? Email bberry@cmham.org for more information.

CCBHC Survey Reminders from the National Council

CCBHC Impact Survey
This is the annual national survey used for advocacy and impact storytelling, helping develop state-specific fact sheets that demonstrate the value of CCBHCs.

Deadline: March 30, 2026
Each clinic received a unique survey link
If you have not yet responded, please complete as soon as possible

Questions or access issues: Contact Anh Pham or Taylor Sabol at CCBHCImpactSurvey@thenationalcouncil.org

CCBHC-T Baseline Assessment Survey
This survey supports the CCBHC-T initiative and is used to understand your clinic’s current operations, capacity, and transformation needs to inform technical assistance.

Deadline: Please complete as soon as possible
One submission per organization (collaborative completion encouraged)
Estimated time: 30–60 minutes

Questions or support: Contact Elijah Troutman at elijaht@thenationalcouncil.org and cc ccbhctransformation@thenationalcouncil.org

The National Council for Mental Wellbeing is hiring for positions to support Michigan CCBHCs!

Michigan is one of three states selected to participate in a three-year, multistate pilot program that will provide critical technical assistance support to states and clinics to advance the vision and impact of the CCBHC model.

CCBHCs provide mental health and substance use services to anyone who walks through the door, regardless of a person’s ability to pay. Through their documented ability to improve access to mental health care, lifesaving substance use treatment, recovery supports, crisis services, integrated care and other services, CCBHCs are eliminating barriers to care for people in hundreds of communities.

Two new positions are now posted!  These roles will serve as core members of the program implementation team and lead priority initiatives of the state roadmap and implementation plan. They will be National Council staff but fully integrated into the state agency as contractors and function as part of their state team.  Click the links below to apply!

Project Management Specialist, Michigan CCBHC-T      |      Systems Integration Advisor, Michigan CCBHC-T

CCBHCs can register now for Sessions 2 and 3 of the Clinic Vision and Practice Transformation Workshops 3-part series

Multi-disciplinary leadership/management teams from each CCBHC should join sessions 2 and 3 of this three-part series:

Session 2: Aligning Clinic Vision and Practice Transformation with State Priorities | This session provides an opportunity for clinics to hear directly from state leaders about priorities for CCBHC implementation, sustainability, and system transformation. Participants will explore how state policy goals, financing approaches, and quality expectations intersect with clinic-level vision and practice transformation efforts.

April 2, 2026    |    1:00 pm – 2:00pm    |    Link to Register

Session 3: Peer-to-Peer Learning for CCBHC Practice Transformation Planning | This peer-to-peer session provides a clinic-only space for leaders to discuss real-world practice transformation challenges, tradeoffs, and lessons learned. Through facilitated discussion and peer exchange, participants will reflect upon strategies for leading organizational change, engaging staff, and prioritizing transformation efforts.

May 6, 2026    |    12:30pm – 1:30pm    |    Link to Register

You can view a recording of Session 1 here (Passcode: CCBHC2026!).

Listen to latest ‘Connections’ Podcasts 

Real voices. Real journeys. Discover the stories that connect us. Hear powerful conversations that bring our community together and inspire better lives for all.

Deidre Mercer, Director of Training at Community Living Services, is guided by her family motto “Share and Care,” which shaped her identity as a caregiver and drives her mission to uplift and support caregivers in her community. Listen Here.

Parent Support Partners and Youth Peer Specialists trainings announced

MDHHS and ACMH recently announced the next set of trainings for Parent Support Partners and Youth Peer Specialists.

Details on the Parent Support Partners training can be found here
Details on the Youth Peer Specialists training can be found here

MDHHS provides updated guidance on training requirement for Children’s Diagnostic and Treatment Service Providers

The Michigan Department of Health and Human Services is providing updated guidance through the attached memo regarding the 24-clock hour training requirement for Children’s Diagnostic and Treatment Service Providers. The requirements for the training are outlined in administrative rule 330.2125. The guidance document can be found here.

Medicaid advocacy tools and health care financing analysis issued

The Protect MI Care Coalition and the Center for Health and Research Transformation release resources around Medicaid advocacy and analyses of health care coverage changes in Michigan.

Protect MI Care Toolkit: This toolkit has sample social media posts, newsletter content, talking points, and graphics that you can use. Please share these resources on social media, especially the content that focuses on collecting personal impact stories. These stories will help drive our success during the budget negotiations throughout the spring. You can access the toolkit here.

Center for Health and Research Transformation (CHRT): We greatly appreciated the presentation from CHRT this morning on their new brief on Michigan’s healthcare landscape between 2008 and 2024. They will issue several more briefs in the coming weeks, and we will be sure to share them with this group. You can access their first brief, which was published earlier this week.

Centers for Medicare & Medicaid Services (CMS) Certified Community Behavioral Health Clinic (CCBHC) Demonstration Direct Payment Transition

The following proposed policy has been issued for public comment:

2552-BH – Centers for Medicare & Medicaid Services (CMS) Certified Community Behavioral Health Clinic (CCBHC) Demonstration Direct Payment Transition. Comments may be forwarded to the e-mail noted on the policy’s transmittal sheet. Proposed Medicaid policies may be accessed here on the MDHHS website. Notice of Proposed Policy.

Behavioral Health Loan Repayment Program (BHLRP) offers student debt relief to providers offering behavioral health care services

Behavioral health service providers in Michigan may be eligible for the MDHHS Behavioral Health Loan Repayment Program (BHLRP).

Behavioral health service providers in Michigan may be eligible for the MDHHS Behavioral Health Loan Repayment Program (BHLRP). This program, previously known as the MI Kids Now Loan Repayment Program, is a medical education debt repayment program focused on incentivizing behavioral health care providers to practice in underserved communities across the state. Those eligible must provide in-person, outpatient behavioral health services through eligible non-profit organizations, including public school-based systems and community mental health organizations. The program is open to providers who serve both children and adults, but priority will be given to those providers who serve children. Eligible providers will be selected to enter into consecutive 2-year agreements, and will assist those selected with up to $300,000 to repay educational debt over a period of up to 10 years.

The application period for the upcoming program cycle will be held from 05/11/26 through 05/29/26. Eligible behavioral health providers are encouraged to apply for the loan repayment program. Application materials for the upcoming program cycle are available on the program website. Further information regarding eligibility criteria, application instructions and frequently asked questions can be found on the program website. Providers who have questions or need more information can email the BHLRP Program Office at MDHHS-Behavioral-Health-LRP@michigan.gov. 

CSH Launches Groundwork, A Training Series Focused on Youth Supportive Housing

Building supportive housing requires navigating a complex process of local systems, funders, and partners. Our new training series will help teams build the knowledge, relationships, and clarity they need to make their supportive housing projects a reality. 

Seven teams from around the country are coming together for a four-month training program (Groundwork) designed to help communities bring new supportive housing projects for youth and young adults to life. 

Building supportive housing requires navigating a complex process of local systems, funders, and partners. Our new training series will help teams build the knowledge, relationships, and clarity they need to make their supportive housing projects a reality. 

Why This Matters Now

Youth and young adult homelessness is growing. Between 2023-24, youth homelessness rose 29%. Youth and young adults experiencing homelessness face unique challenges—and systems are often not designed to fully meet their needs.

By equipping communities with tools, knowledge, and a collaborative framework, Groundwork helps lay the foundation for new supportive housing designed to help youth achieve stability. 

More information can be found here: Announcing the 2026 Groundwork Teams: Advancing Youth Supportive Housing Across the Country – Corporation for Supportive Housing

Kratom Ban Clears House

This week, the Michigan House passed a bill that bans kratom, potentially bringing an end to a substance that has quietly become a roadside staple at gas stations and smoke shops.

After a chaotic 30-minute delay — and a fracture within Republican ranks — the House ultimately approved the measure to outlaw kratom. The bill eventually passed largely along party lines, though Rep. Steve Carra (R-Three Rivers) broke with his party as the lone Republican voting no.

The bill defines kratom as any product derived from the Mitragyna speciosa plant — including its leaves, extracts and compounds — as well as synthetic variants, substances lawmakers say are widely sold in gas stations and can act on the brain similarly to opioids. The push for a full ban hasn’t come out of the blue, scrutiny of kratom from President Donald Trump’s administration has recently intensified.

HB 5537 would make it a misdemeanor to grow, sell or distribute kratom, including synthetic variants, with penalties ranging up to a year and fines up to $20,000 for repeat violations involving minors. The measure includes a narrow exception if the U.S. Food and Drug Administration ever approves kratom for medical use. 

Opponents of the bill argue that, rather than an outright ban, the state should pursue stricter regulation of kratom, such as including dosage guidelines and age restrictions, to address safety concerns without eliminating access entirely.

Following session, House Speaker Matt HALL (R-Richland Township) held a press conference with lead sponsor Rep. Cam CAVITT (R-Cheboygan). They framed the legislation as a public safety measure targeting what they described as a dangerous and addictive substance widely available in gas stations and smoke shops. 

“It was very disappointing to see every Democrat vote against our bill,” Hall said, adding that kratom is a “very deadly drug,” comparable to opioids and even heroin. However, he was proud that Republicans joined together so that Michigan is one step closer to banning what he called poison. 

If the bill ultimately gets signed into law, Michigan would not be the first state to ban kratom completely, as eight other states have enacted the ban, Hall said. 

House Approves AOT Bills

This week, the Michigan House of Representatives approved a package of bills aimed at expanding and revamping assisted outpatient treatment. Earlier this year, the Michigan Senate passed a similar package of legislation, signaling broad support across both chambers.

House Bill 4412 focuses on broadening the use of assisted outpatient treatment (AOT). Under the legislation, hospitals would be required to refer eligible patients to local community mental health programs rather than relying solely on inpatient care. The bill also expands who can support a court petition for treatment, allowing testimony not just from psychiatrists but also from psychologists and certain qualified professionals, such as psychiatric nurse practitioners and physician assistants working with psychiatrists. Additionally, it adjusts court-ordered treatment timelines by allowing AOT orders to last up to one year, and introduces new enforcement tools, including permitting courts to hold status conferences when individuals are not complying with outpatient treatment.

House Bill 4413 centers on patient rights and dispute resolution within the mental health system. The measure expands mediation rights by allowing more individuals — including those filing treatment petitions — to request mediation with community mental health providers. It also establishes clear timelines, requiring mediation to begin within 10 business days and generally conclude within 30 to 60 days. The bill further requires improved notification, ensuring patients are informed of their mediation rights at multiple stages, such as at the start of services and on an annual basis. In addition, it clarifies hospital examination rules by tightening requirements around how quickly individuals must be evaluated and released if they do not meet criteria for treatment.

House Bill 4414 addresses the intersection of mental health and the criminal justice system. The legislation allows prosecutors, defendants, or defense attorneys to request a mental health evaluation to determine eligibility for assisted outpatient treatment. It also creates a diversion pathway, enabling courts — with agreement from both parties — to order outpatient treatment in place of traditional prosecution. The treatment period can last up to 180 days, and charges may be dismissed if the individual successfully complies with the program. However, the criminal case remains pending during treatment to ensure accountability.

CCBHCs can register now for Session 2 of the Clinic Vision and Practice Transformation Workshops 3-part series (April 2, 2026)

This session offers clinics the opportunity to hear directly from state leaders about priorities for CCBHC implementation, long-term sustainability, and broader system transformation. Participants will explore how state policy goals, financing approaches, and quality expectations connect to clinic-level vision and practice transformation efforts. Through facilitated discussion and breakout groups, clinics will reflect on how their emerging CCBHC Vision Plan and Practice Transformation Roadmap align with state priorities. The session will also help clinics begin identifying potential transformation opportunities, key partnerships needed to support change, and early indicators of success. Multi-disciplinary leadership/management teams from each CCBHC should join us on April 2, 2026 from 1:00pm-2:00pm ET.  Find more information and a link to register here.

You can view a recording of Session 1 here (Passcode: CCBHC2026!). For a copy of the slides and workbook referenced in the session, please contact Holly Salazar at holly@aliciadsmithllc.com.

Opportunity for CCBHCs to become a Workforce Accelerator employment site

The State of Michigan is engaged in a collaborative initiative to transform and enhance our Certified Community Behavioral Health Clinic (CCBHC) model, funded by the Ballmer Group. Through this collaboration, CCBHCs have the opportunity to participate in the Workforce Accelerator program as an employment site for candidates pursuing clinical licensure.

The Workforce Accelerator aims to address the challenges of expanding and developing your clinical workforce by offering financial incentives and professional development resources to staff pursuing licensure as behavioral health clinicians. As an employment site in the Workforce Accelerator program, administrators and supervisors will also have access to consultation and technical assistance on best practices for workforce recruitment and retention.

The National Council for Mental Wellbeing is facilitating two informational sessions on becoming a Workforce Accelerator employment site. Please register below.

Thursday, March 19, 3-3:45 p.m. ET, Register Here       |       Thursday, March 24, 3-3:45 p.m. ET, Register Here

For more information you can email CCBHCTWorkforce@thenationalcouncil.org

Article: Where everyone is welcome: How Michigan’s CCBHCs are changing care

A recent article highlights how Michigan’s Certified Community Behavioral Health Clinics (CCBHCs) are expanding access to care and serving people with a full range of mental health needs. The story features clinics across the state and explores how the CCBHC model is helping more Michiganders receive timely, community-based services. Read the full article here. 

Listen to latest ‘Connections’ Podcasts 

Real voices. Real journeys. Discover the stories that connect us. Hear powerful conversations that bring our community together and inspire better lives for all.

Ashley Denaway, founder and Executive Director of Pivot Point Youth Collaborative, presented at the CMHA Annual Winter Conference, sharing her inspiring personal journey and passionate, motivating call to support youth with understanding, love, and validation. Listen Here

In this interview, Hasan Davis J.D., weaves his life journey with golden threads of hope, honoring the “Hope Dealers” who believed in him and stood by him as he found his way. Inspired by their unwavering support, he went on to build a training system rooted in the power of hope and human connection. Discover the quote that changed his life and has guided his writing and all he does. Listen Here

Free naloxone kits available at local MDHHS offices

Below is an excerpt from a recent MDHHS announcement regarding the availability of Naloxone kits.

To help save lives and reduce overdose deaths, the Michigan Department of Health and Human Services (MDHHS) is providing free naloxone, medication that reverses opioid overdoses, at its local offices across the state.

Increased investments in substance use disorder prevention, treatment, recovery and harm reduction have been made possible in large part due to opioid settlement dollars. Through this funding, MDHHS is providing free naloxone kits at its local offices to help expand the availability of this life-saving medication.  

Michigan is slated to receive more than $1.8 billion from national opioid settlements by 2040, with half being distributed to the State of Michigan Opioid Healing and Recovery Fund and the other half being distributed directly to county, city and township governments across the state.  

Michigan residents can visit their local MDHHS office during business hours to request free naloxone kits while supplies last. Naloxone is a stable medication and has proven to withstand a variety of storage conditions. It is easy to use, allowing anyone to respond to an overdose situation, and Michigan’s Good Samaritan Law protects anyone who administers naloxone. 

Michigan has distributed more than 1.7 million naloxone kits and recorded more than 34,000 overdose reversals since the 2020 launch of Michigan’s Naloxone Direct Portal, an online portal that provides the opioid overdose reversal medication at no charge to community groups.

Free naloxone kits can also be obtained at: 

Harm reduction agencies
Vending machines
Local pharmacies
Via mail order

For more information about SUD resources, visit Michigan.gov/SUD

MDHHS announces funding opportunity for substance use prevention programs for youth

Below is a recent announcement by MDHHS regarding funding opportunities to support primary substance used prevention among Michigan youth.

The Michigan Department of Health and Human Services (MDHHS) is pleased to announce the release of a new Grant Funding Opportunity (GFO) to support organizations in delivering primary substance use prevention programs for youth ages 12 to 17.

Funding will support community-based programs that help delay the start of alcohol, tobacco, and other drug use. Approaches may include programs designed to strengthen families, expand access to positive out of school activities, build youth decision-making skills, and create safe and supportive environments. This represents one of many investments being made by MDHHS to respond to the opioid crisis leveraging funding from settlements made with drug manufacturers, distributors, and pharmacies for their role in the overdose epidemic.

This opportunity is intended to support multi-year prevention projects from June 1, 2026, through Sept. 30, 2027. A total of $3.75 million is available, with up to 10 awards anticipated.

Proposals must be submitted electronically through EGrAMS by 3:00 p.m. on April 2, 2026.

For more information or to apply, visit the EGrAMS website. The full grant opportunity and supporting documents can be found under “Current Grants” in the “Specialty Behavioral Health Services” section by selecting the “PSUPS-2026” program.

MDHHS announces phase 2 launch of statewide juvenile justice Bed Management Tool

Below is a recent announcement, by MDHHS, of the status of its Bed Management Tool for juvenile placement resources.

LANSING, Mich. – Today, the Michigan Department of Health and Human Services (MDHHS) announced the launch of phase 2 enhancements to its statewide Bed Management Tool, an innovative digital platform designed to help modernize youth placement in Michigan’s juvenile justice system. The updates will streamline placement coordination and improve real-time reporting. 

Phase 2 updates build upon the tool’s initial launch in July 2025 by expanding functionality to improve residential treatment placement matching, reduce administrative burden and increase transparency across courts, facilities and policymakers.

The Bed Management Tool was developed in partnership with the University of Michigan’s Child and Adolescent Data Lab. The tool was created in response to the need for efficient, data-driven decision making in residential placement and treatment for youth involved in Michigan’s juvenile justice system.

“The Bed Management Tool provides a quick and simple view of placement opportunities in real time,” said Julie Duffey, residential coordinator, Highfields, Inc. “It can save countless hours for providers searching for an open bed.”  

In addition to supporting individual placement decisions, the Bed Management Tool functions as a statewide reporting system, providing visibility into youth placement, facility utilization and occupancy trends. The information collected supports statewide planning, identifies service gaps and will guide future system improvements.

Phase 2 enhancements include:

– Advanced search and filter capabilities, allowing users to identify facilities by services offered, age range, gender served and other placement criteria.

– Expanded service arrays to better align youth treatment needs with facility programming.

– Length-of-stay information to support planning and system flow.

– Detailed facility descriptions, including program focus and treatment approaches.

– Clear identification of admission exclusions to reduce unnecessary placement inquiries. 

The Phase 2 launch aligns with broader reforms initiated by the Task Force on Juvenile Justice Reform established by Governor Gretchen Whitmer in June 2021 through Executive Order 2021-06. The Task Force led a comprehensive, data-driven review of Michigan’s juvenile justice system, recommending strategies grounded in research and constitutional principles to strengthen standards, improve efficiency and effectiveness and increase the safety and well-being of youth impacted by the juvenile justice system.

For more information about the Bed Management Tool, please contact: MDHHS-JJReform@Michigan.gov.

Senate Passes Medical Debt Legislation

The Senate this week passed legislation from Sens. Sarah ANTHONY (D-Lansing) and Jonathan LINDSEY (R-Coldwater) that takes a bipartisan approach to addressing medical debt, capping annual interest rates at 3% and barring consumer reporting agencies from allowing medical debt to reduce credit scores.

SB 449, SB 450, SB 451, SB 701 and SB 702 represent a bipartisan collaboration between Anthony, a leader in Michigan Democratic circles and the Senate Appropriations Chair, and Lindsey, one of the Senate’s most conservative members.

SB 449 and SB 450 obligate hospitals to create and deploy financial assistance programs, focused on patients who are uninsured with annual income at or below 350% of the federal poverty guidelines. They must also cover patients who owe the hospital one or more unpaid bills, in a 12-month period, worth more than 30% of their yearly income. 

Hospitals’ programs must consider the financial resources and out-of-pocket costs of patients who are insured by health benefit plans as well. 

If signed into law, the bills would require hospitals, beginning in October of next year, to submit to the state the number of applications their program received and processed and the amount of uncollected or forgiven debt for patients who were not accepted into the program. 

Health systems with multiple hospitals are allowed under the bills to file one report to the state’s health department containing information for each of their hospitals, distinguishing which is which.  Failing to follow new financial assistance mandates can result in a $10,000 civil fine that can be deposited into a new medical debt relief fund, managed by the state treasurer. The fund can earn money from other sources and be used on medical debt relief programs. 

SB 451 bans consumer reporting agencies from making reports on medical debt that negatively impact a resident’s credit score, and medical creditors and medical debt collectors in the state would be prohibited from reporting to consumer reporting agencies.

SB 701 and SB 702 ban healthcare facilities and medical debt buyers from charging late fees or interest on debt exceeding 3%, and outlaw wage garnishments and property foreclosures from being used to pay off debt.

House Speaker Matt HALL (R-Richland Township) said he’s concerned about medical debt, but he sees the Senate package as “incomplete” because it doesn’t include a hospital price transparency piece. “We’ll see what happens with that,” said Hall, adding that the legislation that extends the interstate physician compact by spring break needs to be a priority.

Stricter Criminal Penalties For Delivery of a Controlled Substance Resulting in Serious Injury Pass in the House

Individuals may face stricter criminal penalties if someone suffers serious injuries after using the substances they supplied under legislation the House passed this week on party-line votes.

HB 5157, sponsored by Rep. Tom KUHN (R-Troy), would create a felony punishable by life in prison or any term of years for delivering a Schedule 1 (besides Marijuana) or Schedule 2 controlled substance that results in serious injury. The bill passed, 57-49.

With the same sponsor and vote, HB 5158 would add that new crime to Michigan’s sentencing guidelines. 

The bill comes after Oakland County Sheriff’s officials noted that they’re seeing a rise of Xylazine being used to cut these drugs. The substance has literally caused people’s skin to fall off. Necrosis of limbs is also a side effect of using xylazine. In these cases, the drug doesn’t cause death, but it is causing permanent, lasting injuries, they argued.

Before the vote, Rep. Amos O’NEAL (D-Saginaw) urged lawmakers to vote against the bills, arguing that the package sets Michigan back to policies of the 1980s and early 1990s. O’Neal said this was a time when “the fear of drugs led this country to embrace a simple answer to a complex problem — more arrests, longer sentences and more prisons.”

He pointed to racial disparities in incarceration, noting Black residents in Michigan are imprisoned at significantly higher rates than white residents.

“These numbers paint a picture of families torn apart, communities destabilized, generations — I literally mean generations — scarred and lives destroyed,” O’Neal said.

O’Neal also questioned the fiscal and operational impacts of expanding prison sentences, noting the state already faces a shortage of roughly 900 corrections officers and spends about $48,000 per year to incarcerate a single person.

“Have we learned anything from the last 40 years of mass incarceration?” he said. “There is no credible evidence that increasing prison sentences for drug offenses deter drug use, prevent overdoses or prevent drug crimes.”