If approved, the long-term plan for privatization of $2.6 billion worth of services would begin October 1 with four pilot projects. These projects would allow health plans to obtain Medicaid contracts that couple behavioral health services with the physical health services they already provide.
While the bill’s sponsors say it will save money by reducing administrative costs and keeping mental health patients out of emergency rooms, detractors argue that companies with little experience in mental health may not offer the quality of care that patients need.
Earlier this June, 11 state mental health organizations penned a letter to Gov. Rick Snyder (R) asking him to veto the budget’s new privatization provisions, citing recommendations from three state-initiated reviews of mental health services. All three reviews recommended against privatization
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