Publications

The Behavioral Health Landscape in Michigan

April 29, 2026

Michigan is facing a severe access crisis for mental health and substance use disorder (SUD) services, a situation worsened by the COVID-19 pandemic. 2019 data indicates that nearly half of Michigan adults with mental illness and 73% of those with SUD do not receive treatment. A critical takeaway from the brief is that insurance coverage does not guarantee access to care.

Child Psychiatrist Map in Michigan

Systemic Challenges

  • Workforce Shortages: Approximately 6 million residents live in Mental Health Professional Shortage Areas. The state needs at least 249 more psychiatrists to alleviate these gaps.
  • Pediatric Crisis: Michigan has only 11 child psychiatrists per 100,000 people, significantly below the recommended ratio of 47.
  • Wait times and “ED Boarding”: Insufficient outpatient providers and inpatient beds lead to long waitlists and “ED boarding,” where patients wait days in emergency departments for psychiatric care.
  • Payment Barriers: Many outpatient providers do not accept insurance, forcing patients to pay out-of-pocket even when covered.

Current Coverage Structure

The system is divided by the severity of the patient’s needs:

  • Mild-to-Moderate: Covered by private insurance, Medicare Part B, or Medicaid health plans.
  • Moderate-to-Serious: Managed through a Medicaid “carve out” via Prepaid Inpatient Health Plans (PIHPs) and Community Mental Health (CMH) programs.

 

Desired Outcomes and Strategic Solutions

To bridge these gaps, the brief proposes several strategic interventions:

1. Workforce Development

  • Funding loan repayment programs and scholarships for behavioral health education and training.
  • Increasing residency slots for psychiatrists and utilizing visa waiver programs (Conrad30) for foreign medical graduates.
  • Expanding the “scope of practice” to allow nurse practitioners and physician assistants to perform evaluations and treatments at the “top of their licenses”.
  • Joining interstate licensing compacts to streamline the licensure process and reduce barriers to practice.

2. Integrated Care and Community Services

  • Expanding Certified Community Behavioral Health Clinics (CCBHCs) and behavioral health homes to integrate physical and mental health care.
  • Supporting collaborative care models like Michigan Child Collaborative Care (MC3), where specialists support primary care providers in delivering services.
  • Continuing efforts to “carve back in” behavioral health services to Medicaid health plans to improve financial integration.

3. Policy and Reimbursement

  • Parity Enforcement: Strictly enforcing federal laws requiring mental health coverage to be no more restrictive than physical health coverage.
  • Telehealth Support: Ensuring permanent and adequate reimbursement for behavioral health telehealth services across all insurance types.

 

The ultimate goal is a coordinated, adequately staffed system that eliminates geographic and financial barriers to ensure timely care for all residents.

Read the Brief