DCH Revises MIChild Benefit Administration The Department of Community Health issued a memorandum to all PIHP and CMHSP Directors earlier this week that advised of a change in the payment process and administrative management responsibilities for the MIChild behavioral health benefit, effective October 1, 2014. CMHSPs have been required to provide the matching funds and been responsible for financing any expenditures beyond their MIChild revenue with general funds. During FY15 CMHSP contract negotiations, MACMHB’s contract negotiation team raised this issue and argued that the state should bear responsibility for providing the matching funds and developing an actuarially sound rate to manage and deliver this benefit to eligible children. In its announcement of the change, the Department indicated they would be revising contract language for the CMHSPs to remove their obligations under MIChild, and to add language in the PIHP contracts to assume responsibility for administering this benefit. The Department will also provide the PIHPs with both the federal and matching share of the benefit, as well as providing a rate which is actuarially certified. The PIHP contracts will also be modified to allow them to use existing risk reserves (if necessary) to cover any shortfalls in MIChild revenue. This change will help all CMHSPs in their anticipated shortfalls in general fund financing for FY15. Based on the latest fiscal year end reports (from FY13), CMHSPs contributed almost $3M in general funds to subsidize the MIChild benefit.
Posted on: Fri, 12 Sep 2014 18:14:27 +0000
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