MI HB4576

Consolidates Michigan's 10 regional specialty prepaid health plans into a single statewide entity to manage behavioral health specialty services and supports for eligible Medicaid beneficiaries with mental illness, developmental disabilities, or substance use disorders by September 1, 2024.

Requires contracted health plans to integrate physical health care services and behavioral health specialty services under a comprehensive Medicaid benefit package, with beneficiaries able to choose from at least 2 contracted health plans unless a rural exemption applies.

Mandates contracted health plans and the single statewide entity meet strict operational requirements including licensure, financial solvency, network adequacy, care management capabilities, and compliance with federal and state regulations as verified through state-conducted readiness reviews.

Establishes community mental health services programs must contract with each contracted entity in their service area to provide behavioral health specialty services at standardized fee schedules, with opportunity for additional value-based contracting payments.

Requires the department to develop an implementation plan within 120 days outlining the transition timeline, procurement process, readiness requirements, and key performance metrics, with full implementation within 2 years of the bill's effective date.