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Proposed Settlement Agreement DD v MDHHS

Background 

The Michigan Department of Health and Human Services (MDHHS) has received preliminary court approval for the settlement of litigation known as D.D. v. MDHHS (formerly known as K.B. v. MDHHS).  

The lawsuit alleges that Medicaid-eligible children and youth under age 21 were not receiving medically necessary intensive home or community-based services in a timely manner. Examples of intensive home or community-based services include therapy, crisis support or in-home care. These services are required by Medicaid's Early and Periodic Screening, Diagnostic and Treatment (EPSDT) provisions. 

 

What is included in the Settlement?

Under the terms of the proposed settlement agreement, MDHHS would:

  • Create the Michigan Intensive Child and Adolescent Services (MICAS) array. The array would include:
    • Intensive crisis stabilization services
    • Intensive home-based services
    • Intensive care coordination with wraparound
    • Respite care
    • Parent support partner services
    • Youth peer support services
  • Demonstrate the capacity of the state to provide these services to Medicaid-eligible children and youth under 21
  • Provide information to the public to explain the availability of MICAS services and share who is eligible to receive these services
  • Implement a statewide behavioral health tool to help determine who is eligible for MICAS services and the appropriate level of care needed
  • Develop a process for eligible individuals to appeal a service denial and file complaints

Please note: The proposed settlement agreement does not provide direct payments to Medicaid-eligible children and youth under age 21. MDHHS has agreed to pay attorney fees and litigation costs.

 

What are the next steps for anyone affected by the proposed Settlement Agreement?

  • If you agree with the terms of the settlement agreement, you do not need to do anything. 
  • If you do not agree with the terms of the settlement agreement, but do not wish to file a formal objection with the Court, you do not need to do anything.
  • If you do not agree with the terms of the settlement agreement, and you wish to file a formal objection with the Court, you must mail your objection to:

The Fairness Hearing will be held on August 27, 2025, at 2:00 p.m. in Bay City, Michigan. You may attend this hearing, and if you filed a formal objection, the Court may allow you to speak at this Fairness Hearing. If your objection is not postmarked by June 17, 2025, the Court is not required to consider your objection and can bar you from speaking at the hearing. 

If the Court grants final approval after the Fairness Hearing, the relief contained in the terms of the proposed settlement agreement would be available to all affected individuals and the settlement agreement will be binding.

 

Additional Information

Read the full Class Action Notice and terms of the proposed settlement agreement.

Do you have questions about the settlement or the objection process? You can email: KBSettlement@drmich.org

MDHHS is happy to schedule an informational session, as requested, to address questions about the impact of this proposed settlement agreement. Questions or requests for an informational session can be sent to: MDHHS-BCCHPS-Questions@michigan.gov