(LANSING) - A Michigan judge has raised legal concerns about the state's plan to overhaul how Medicaid-funded mental health services are managed, putting the proposal on uncertain footing.
The Michigan Court of Claims ruled that the state's plan to restructure its $4.9 billion behavioral health system may conflict with Michigan law, particularly in how funding would flow to local mental health agencies. The system serves more than 300,000 residents statewide.
The proposal would reduce the number of regional agencies that manage mental health care from 10 to three. Several local mental health providers sued after the plan was announced, arguing it would weaken local oversight and disrupt care.
While the judge did not block the plan outright, he said any changes must ensure local agencies receive enough funding to meet their legal obligations. State health officials say they are reviewing the ruling.
The decision adds uncertainty to Michigan's latest attempt to reform its mental health system, an effort supporters say could expand access but critics fear could undermine local control.