“Advocacy Action Alert- Protect Medicaid” |
The Senate has passed H.R. 1 by a vote of 50-51, with J.D. Vance providing the tie-break YES vote. The legislation slashes Medicaid funding with the biggest cuts to Medicaid in history, primarily by creating burdensome work requirements and caps on provider taxes, and is estimated to result in nearly 12 million people losing Medicaid coverage. Republican Senators Paul (KY), Tillis (NC), and Collins (ME) joined all Democrats in voting NO. The legislation now moves back to the House for final passage. If the House cannot get the votes to pass the Senate-passed version of H.R. 1, the legislation will need to go to conference committee.
Please act immediately as this Bill may come to a vote in the US House at any minute – call your US House Rep and let them know how you want them to vote. Calls will be received faster than emails, though call volume may be high making it difficult to get through, so send an email if you are unable to reach them by phone. |
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On May 23, the Michigan Department of Health and Human Services announced that they do in fact plan to move forward with a competitive procurement process for the state’s Pre-Paid Inpatient Health Plan (PIHP) contracts. MDHHS plans to issue a request for proposals (RFP) for Pre-Paid Inpatient Health Plans (PIHPs) the summer of 2025 with the goal of a service start date Oct. 1, 2026.
The Community Mental Health Association of Michigan (CMHA) and our members remain deeply committed to improving Michigan’s public behavioral health system. While we support meaningful reforms that enhance access and quality of care, we have serious concerns about the Michigan Department of Health and Human Services’ (MDHHS) recent announcement regarding a new procurement process for Pre-Paid Inpatient Health Plans (PIHPs). Although MDHHS states this initiative will increase access, choice, and preserve current Community Mental Health (CMH) providers, the reality of the proposed plan tells a different story. Privatization Threatens Local Control and Accountability The proposed competitive procurement process appears structured to favor large, private non-profit health plans—while excluding the very public PIHPs that have successfully managed Michigan’s specialty behavioral health services for decades. These PIHPs, governed locally and accountable to county-elected officials, will be barred from applying in their current form. This marks a major shift away from local governance, transparency, and public accountability. A Misguided Approach to System Challenges This proposal does not address the root causes of access and timeliness challenges in the system—namely, workforce shortages and chronic underfunding. Instead, it risks diverting hundreds of millions of dollars away from direct care and into administrative overhead. Private plans often operate with 15% overhead costs, compared to the 2% of current PIHPs. This could result in $300–$500 million in funds no longer reaching those who need services most. Competitive procurement causes system chaos at a time when there is so much uncertainty at the federal level and does not address any of the core issues facing the system. We believe the state needs to take meaningful action, such as ensure sufficient funding, protect local voice, reduce administrative overhead, and increase workforce and network capacity – all items that lead to improved access to care and services and none of which require a procurement process. |