Manistee joins opposition to state mental health plan
At issue is a proposal from the
Mental health leaders discussed drafts of the plan in May, but the final request for proposal was released in August. Bids are due
Centra Wellness, which serves
Executive director
He warned that if new contractors took over, leftover Medicaid funds could be kept rather than returned or reinvested locally.
"This is about local accountability," Johnston said. "Right now, if there's a problem with services, you can come to me and to your county board. Under this plan, those decisions would be made by a company that doesn't answer to you."
According to Johnston,
"Only my county commissioners can make that decision, not me," Johnston said.
He argued that such outreach showed how large national corporations are already seeking involvement.
MDHHS says bidders must be nonprofits, universities or governmental entities. Johnston argues this effectively excludes community mental health organizations like Centra Wellness, which are governmental subdivisions under state law, while allowing private insurers, universities or 501(c)(3) nonprofits to participate.
For Centra Wellness, those Medicaid dollars account for about
"If private companies win the bid, they will be the ones funding me," Johnston told the board. "I will have no longer a connection to the county commissioners. If I'm not behaving in a way that supports our courts, sheriffs or counties, it won't matter. You'll have to go to what I call 'the thing,' because I'll be out of it."
Johnston noted that Centra Wellness currently receives about
"That money disappears fast," he said. "An inpatient hospital stay is
Looking to the past
Johnston reminded commissioners that the same issue surfaced more than two decades ago.
Johnston pointed to a 2002 case in which then-
"The department tried to do this before," Johnston said. "
Commissioners voted unanimously to allow
The board noted the county will not contribute money to the case. Instead, its name will be included only to show support.
Johnston said attorneys are reviewing the RFP, adding that he worries it could shift statutory duties from counties to a new entity — something he believes is unlawful.
"This is one of those things that directly impacts our residents," board chair
Opposition
"Although MDHHS states this initiative will increase access, choice and preserve current community mental health providers, the reality of the proposed plan tells a different story," the association wrote. "The proposed competitive procurement process appears structured to favor large, private nonprofit health plans — while excluding the very public (Prepaid Inpatient Health Plans) that have successfully managed
The group said current Prepaid Inpatient Health Plans operate at about 2% administrative overhead, compared to 15% or more for private health plans, a difference the association estimates could divert
"This proposal does not address the root causes of access and timeliness challenges in the system — namely, workforce shortages and chronic underfunding," said
At that meeting,
"Right now, public community mental health boards are subject to the Open Meetings Act and provide local accountability," Krogman said. "If these contracts go to private plans, people will lose that transparency and local voice."
He also raised concerns that mental health dollars could be diverted to shore up physical health services if the carve-out between mental and physical health is dissolved.
"Maintaining a publicly accountable and locally governed behavioral health system is essential," he said.
Krogman said current Prepaid Inpatient Health Plans may not qualify to bid in their present form despite decades of experience, and suggested the issue could lead to legal challenges under the Michigan Mental Health Code.
The
Benefits
While community mental health leaders and county associations across
"Michigan Medicaid beneficiaries deserve access to behavioral health care services when and where they need them," said
The department said the bidding process was shaped by a March survey that drew responses from more than 2,600 beneficiaries, families, providers and other stakeholders.
According to MDHHS, any selected contractor will be required to comply with the Open Meetings Act and Freedom of Information Act and to deliver services through local community mental health providers. Critics argue this contractual obligation is weaker than statutory requirements for public boards.
The procurement process is expected to play out through the fall, with service changes slated to begin


Biden offered health insurance access to DACA immigrants. Trump took it away.
Minneapolis Fed’s Neel Kashkari proposes two more rate cuts this year
Advisor News
- Retaining clients by giving them a memorable experience
- Addressing the longevity paradox
- Employers shift focus from retirement access to financial outcomes
- Helping widowed clients navigate their new financial reality
- Navigating client communication in a digital age
More Advisor NewsAnnuity News
- Farm Bureau P&C insurers post first underwriting gain since 2021
- Legacy Marketing, Malibu Life launch two fixed indexed annuities
- Changing client priorities are reshaping annuity conversations
- Solen Software acquires annuity software provider Cooperative Technologies
- MassMutual Expands Lending Options With New Secured Credit Line
More Annuity NewsHealth/Employee Benefits News
- Terry Savage: Small business owners, now is the time to offer health insurance coverage
- Aldermen select employee medical insurance broker services provider
- Southwest Bridge Health focusing on insurance coverage gap in Berrien County
- HEALTHCARE SHOULDN'T REQUIRE A MAP
- BOSTON ENCOURAGES RESIDENTS TO APPLY FOR HEALTH INSURANCE DURING OPEN ENROLLMENT SEASON
More Health/Employee Benefits NewsLife Insurance News