MARQUETTE, Mich. (WLUC) – On Tuesday, the Marquette County Board heard concerns over the state’s plan to privatize prepaid inpatient health plans, also known as PIHPs.
The board heard privileged comment from Pathways CEO Matt Maskart regarding the plan. Under the plan, the state will seek proposals from private entities to serve as the state’s PIHP.
PIHPs manage Medicaid-funded specialty behavioral health and developmental disability services for those eligible–specifically for those with mental illness or substance use disorders.
The state’s Department of Health and Human Services says the move will create a more accessible and person-centered system of care. Those opposed say there are major concerns with the state’s proposed plan.
“There are three main concerns for both community mental health providers as well as the county,” said Matt Maskart, Pathways Community Mental Health CEO. “They are loss of local governance, risk to the public safety net and then, like everything, there’s always a financial component to that as well.”
Maskart says due to an increase in private entities’ overhead administration costs, this plan could result in a $500 million cut to mental health care funding.
The board requested an update from other U.P. counties on their stance before they entertain any resolution in opposition to the state’s plan to change the current system.
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