Great Lakes Wire

The Michigan Department of Health and Human Services (MDHHS) has announced a call for proposals from organizations interested in serving as the state’s Prepaid Inpatient Health Plans (PIHP). These plans are tasked with ensuring Medicaid beneficiaries receive behavioral health care services and support.

Michigan’s specialty behavioral health system currently covers about 300,000 residents. This includes adults with serious mental illness, children facing serious emotional disturbance, individuals with substance use disorder, and those with intellectual and developmental disabilities. The MDHHS contracts with regional PIHPs to manage these Medicaid-covered services alongside Community Mental Health Service Providers throughout the state.

“Michigan Medicaid beneficiaries deserve access to behavioral health care services when and where they need them,” said Elizabeth Hertel, MDHHS director. “A competitive procurement process for the state’s Prepaid Inpatient Health Plan contracts will help create a more accessible and person-centered system of care dedicated to ensuring Michigan residents a healthier future.”

PIHPs oversee delivery of behavioral health care by managing provider networks that include Community Mental Health Service Providers (CMHSPs). Their responsibilities also involve making sure people get necessary services and supporting the department’s mission to improve resident health and safety.

MDHHS will select PIHPs through a competitive procurement process. Chosen organizations will contract with the state to provide managed care functions for specialty behavioral health services. Each PIHP must also contract with CMHSPs to deliver comprehensive mental health services as outlined by the state’s Mental Health Code.

Input from Medicaid beneficiaries, advocacy groups, community organizations, tribal governments, providers, and others was gathered through an online survey to inform this request for proposal (RFP). Over 2,600 responses were received representing diverse perspectives across Michigan.

According to MDHHS, transparency remains a priority in this process. Requirements for PIHPs include adherence to the Open Meetings Act and Freedom of Information Act. Only nonprofit organizations may apply, with extra consideration given to public entities to encourage collaborative governance. At least one-third of each PIHP’s governing body must be individuals who have lived experience within Michigan’s specialty behavioral health system.

The RFP process is being managed by the Michigan Department of Technology, Management & Budget (DTMB). Interested vendors can find details about registration and submission on the SIGMA Vendor-Self Service system online at https://sigma.michigan.gov/webapp/PRDVSS2X1/AltSelfService or visit DTMB – How to Register as a Vendor at https://www.michigan.gov/dtmb/services/procurement/vendor-information/register-as-vendor for instructions on how to participate.

Written questions regarding the solicitation may be submitted by August 20 via email to the solicitation manager. Answers will be posted on SIGMA by August 29. Final proposals are due September 29.

More information about Michigan's Specialty Behavioral Health Services is available at https://www.michigan.gov/mdhhs/keep-mi-healthy/mentalhealth/bh-services.