Reduce Unnecessary Administrative Costs in Order to Direct More Money to Direct Care Workers and Services
There is a significant amount of waste regarding Medicaid spending at the Prepaid Inpatient Health Plan (PIHP) and Community Mental Health Services Program (CMHSP) levels in the state of Michigan. This loss leads to fewer dollars being available for direct care workers and essential services.
The State of Michigan should adopt a third-party, administrative services organization (ASO) model to administer Medicaid services, similar to the one adopted in the state of Connecticut. In doing so, PIHPs will be eliminated from the appropriations process altogether, and CMHSPs will remain only as providers, thereby eliminating a conflict of interest.
