The Appropriations Subcommittee on Human Services convened on May 20, 2025, to discuss pressing issues related to behavioral health services and adoption rates in Michigan. The meeting highlighted the increasing acuity of needs among families and children, as well as the challenges faced by service providers in adapting to recent changes in funding and contract structures.

The session began with a discussion on the necessity for rebidding contracts within the department, with Jason from Wellspring noting that their organization currently lacks contracts with Prepaid Inpatient Health Plans (PIHPs). He emphasized that while they provide outpatient counseling and home-based substance use disorder (SUD) services, the needs of families and children are becoming more acute. This sentiment was echoed by other participants, who expressed concerns that the redesign of services may not adequately address these urgent needs.

The conversation shifted to the financial challenges faced by agencies in providing necessary services. It was noted that current reimbursement rates do not keep pace with the rising costs of care, leading organizations to subsidize mental health professionals to ensure that children in foster care receive adequate support. Participants stressed the importance of navigating these funding challenges to maintain service availability.

Representative Cowley raised concerns about the impact of recent changes in rural Michigan, specifically mentioning that Traverse County's designation as a metro area could disadvantage neighboring counties like Antrim, Kalkaska, and Benzie, which may struggle to provide required services.

The meeting also addressed changes in adoption rates, which have been influenced by new contracts effective October 1. Julie explained that the rates reflect the needs of children and are set by the department in collaboration with external consultants. While rates have increased, they only apply to new referrals post-October 1, leaving some children on older, lower rates.

Overall, the meeting underscored the critical need for ongoing support and adaptation within Michigan's human services framework to effectively respond to the evolving needs of its most vulnerable populations. The subcommittee plans to continue monitoring these issues and work towards solutions that ensure adequate care and support for families and children across the state.