State Reps. Luke Meerman and Matthew Bierlein are calling for a comprehensive audit of Michigan’s taxpayer-funded mental health care system following concerning findings and testimony reviewed by their respective House Oversight subcommittees.

Meerman, chair of the House Oversight Subcommittee on Child Welfare Systems, previously released findings summarizing testimony from mental health providers, nonprofit leaders, parent advocates and families who have interacted directly with Michigan’s community mental health system. Bierlein chairs the House Oversight Subcommittee on Public Health and Food Security.

“Nearly 1.5 million Michiganders report a mental health condition of some kind. An issue of this magnitude, impacting families and kids throughout our communities, needs to be a priority,” said Bierlein, of Vassar. “People who help fund our state’s mental health care system deserve efficiency and positive behavioral health outcomes. That should be a baseline expectation for every taxpayer and anyone who needs care. A thorough, transparent performance review will drive home where Michigan has fallen short and where leaders and departments should implement changes.”

During public hearings held in late 2025 and early 2026, participants described recurring problems with the state’s mental health system, including:

• Long wait times and barriers to behavioral health care.
• Children being placed in hospitals or similarly inappropriate facilities because more suitable treatment options are often unavailable.
• Poor coordination among Community Mental Health (CMH) agencies, the Michigan Department of Health and Human Services, schools, foster care agencies and service providers.
• Staffing shortages despite increasing taxpayer investment.
• Contracting and reimbursement challenges for independent providers.
• Retaliation against providers, advocates and families who raise concerns about the system.
• Geographic disparities in available services and treatment capacity.
• Questions about whether public funding is producing measurable improvements in care and outcomes.

Michigan currently dedicates more than $5 billion annually to behavioral health services, with most funding flowing through CMH Service Programs and Prepaid Inpatient Health Plans.

“When taxpayers are investing this level of funding into a system serving some of our most vulnerable residents, they should be witnessing better, more effective outcomes,” Meerman said. “An audit gives us an objective way to identify where those dollars are going and what changes are needed to better serve Michigan families. It’s about following the facts wherever they lead and making sure children and families receive the care they’ve been promised.”

The representatives are calling for a comprehensive review of both the financial management and performance of Michigan’s mental health system. Areas of examination should include Medicaid billing practices, administrative spending, executive compensation, contract oversight, service outcomes, wait times, provider capacity and compliance with state and federal requirements.

“Michigan invests billions of dollars each year in behavioral health services because these programs matter,” Meerman said. “We need answers and transparency for the people and, most importantly, a mental health system that works for those who depend on it. An audit is the first step toward restoring accountability and improving care across Michigan.”