MI SB0597

Amends section 105d to change language from "shall be required to" to "must" regarding monthly cost-sharing remittance requirements for Medicaid enrollees and adds "specialty integrated plans" alongside specialty prepaid health plans in several subsections related to performance metrics and payment withholding.

Amends section 109f to replace the existing pilot project language with a comprehensive plan requiring the Department of Human Services to develop and implement specialty integrated plans that combine physical health care services and behavioral health specialty services for eligible Medicaid beneficiaries by 2026.

Establishes a phased transition timeline: serious mental illness and foster care beneficiaries within 24 months; substance use disorder beneficiaries within 24 months after first phase; developmental disability beneficiaries within 24 months after second phase.

Requires specialty integrated plans to meet specific procurement criteria including network adequacy, staffing, quality improvement programs, care coordination, five years of behavioral health and managed care experience, and mandatory contracts with community mental health services programs.

Mandates the department conduct formal evaluations at 18-month intervals for each implementation phase using predefined key metrics assessing health outcomes, care coordination, access, and utilization, with reporting to the legislature within 90 days of each evaluation.