MDHHS seeking proposals to improve specialty behavioral health care for Medicaid beneficiaries

Deadline for proposals is September 29

LANSING, Mich. – The Michigan Department of Health and Human Services (MDHHS) is seeking proposals from entities to serve as the state’s Prepaid Inpatient Health Plans (PIHP) to ensure Medicaid beneficiaries receive behavioral health care services and support.

Michigan’s specialty behavioral health care system provides health care coverage to approximately 300,000 Michiganders, including adults with serious mental illness, children with serious emotional disturbance, individuals with substance use disorder and individuals with intellectual and developmental disabilities. MDHHS contracts with regional PIHPs to manage and deliver these Medicaid-covered services in conjunction with the Community Mental Health Service providers embedded in the communities across 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 are responsible for making sure people receive the behavioral health care services and support they need and managing the network of behavioral health care providers including Community Mental Health Service Providers (CMHSPs). They play a vital role in helping the department achieve its mission to improve the health, safety and prosperity of residents. 

Through a competitive procurement process, MDHHS will select PIHPs to contract with the state to provide managed care functions for the specialty behavioral health care services. The PIHP must contract with CMHSPs to provide a comprehensive array of mental health services as required by the Mental Health Code.

Feedback MDHHS received from Medicaid beneficiaries and their families, advocacy groups, community-based organizations, federally recognized tribal governments, health care providers and others via an online survey helped inform the request for proposal (RFP). MDHHS received more than 2,600 responses representing a variety of individuals and partners across Michigan. 

MDHHS remains committed to transparency and preserving the public foundation that has long anchored behavioral health care in the state. As such:

•          PIHPs will be required to adhere to the standards set forth in the Open Meetings Act and the Freedom of Information Act.
•          The RFP is limited to nonprofit organizations and additional consideration will be provided to public entities to support public value and encourage collaborative governance.
•          A minimum of one-third of the PIHP’s governing body must be individuals with lived experience in Michigan’s specialty behavioral health system elevating the voice of individuals and families served. 

The Michigan Department of Technology, Management & Budget (DTMB) is managing the RFP process on behalf of MDHHS.  The PIHP RFP is posted on SIGMA Vendor-Self Service system online. To bid on proposals, all vendors must first be registered with SIGMA Vendor Self-Service. Registration is free, and information on how to register and obtain an account to bid on open solicitations is available online: DTMB – How to Register as a Vendor.

Interested bidders are encouraged to refer to the proposal instructions for additional information regarding questions, submittal and deadlines. Responses from bidders are due Monday, Sept. 29. Bidders may submit written questions by emailing the solicitation manager Wednesday, Aug. 20. DTMB will post answers to bidder questions on the SIGMA system by Friday, Aug. 29.

Additional information about Michigan’s Specialty Behavioral Health Services can be found at Michigan.gov/BehavioralHealth.

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