The Mental Health Association in Michigan

is the only statewide, non-governmental agency concerned with the broad spectrum of mental illness across all age groups.

February 19, 2017

Public Comment Period on Section 298 Financial Model Proposals

Dear Stakeholders,

The Michigan Department of Health and Human Services (MDHHS) posted draft financing models for the Section 298 Initiative for public review today. The Section 298 Initiative is a statewide effort to improve the coordination of physical health services and behavioral health services. The discussion of financing models is part of the next phase of the Section 298 Initiative.

MDHHS collaborated with the 298 Facilitation Workgroup to develop the models. The models are based upon 42 proposals that MDHHS received from a wide variety of stakeholders. Based upon the proposals, MDHHS and the workgroup developed six categories of financing models and one category of non-financing models, which are listed below. The 298 Facilitation Workgroup will only be evaluating five of the proposals, which are marked with an asterisk (*).

  • Statewide Behavioral Health Managed Care Organization*
  • MHP or PIHP Payer Integration
  • CMHSP (Provider) Capitation*
  • Modified Managed Care Approaches*
  • Current Financing Structure Enhancement*
  • Local/Regional Integration Arrangements*
  • Non-Financing Models

The public input process for the financing models will last from February 16, 2017 to February 28, 2017. MDHHS has established several opportunities to gather comments on the financing models, which are described below:

  • Stakeholders may complete an online survey to gather input on the draft financing models. The survey can be accessed through the following link.
  • MDHHS will also host a public forum to gather comments on February 24, 2017 from 9 a.m. to 12 p.m. The forum will be held at the East Lansing Hannah Center, which is located at 819 Abbot Road in East Lansing. Individuals who are interested in attending the forum should RSVP by using this link.

MDHHS and the 298 Facilitation Workgroup will use the comments from the public input process to refine and improve the draft financing models. The revised financing models will be incorporated into the Section 298 Final Report, which must be submitted to the legislature by March 15, 2017.

For more information about the draft financing models or the Section 298 Initiative, visit or send an email to

Best regards,

The Section 298 Project Team

Michigan Department of Health and Human Services