NOTICE: Proposed Settlement Could Improve Access to Mental Health Services for Youth

The Michigan Department of Health and Human Services (MDHHS) has received preliminary court approval for a settlement in a lawsuit called DD v. MDHHS (formerly KB v. MDHHS). This lawsuit claimed that some children and teens on Medicaid weren’t getting the mental health services they needed, when they needed them.

What is this about?

The lawsuit focused on Medicaid-eligible children and youth under age 21 in Michigan who need intensive home or community-based mental health services—things like therapy, crisis support, or in-home care—to help with emotional, behavioral, or psychiatric challenges.

If the court gives final approval, MDHHS will make changes to improve how these services are assessed and provided across the state.

What would the settlement do?

Under the agreement, MDHHS would:

• ✅ Create the MICAS service array, including:

  • Intensive crisis stabilization

  • Home-based services

  • Wraparound care coordination

  • Respite care

  • Parent support partners

  • Youth peer support

• ✅ Make sure there is enough capacity across the state to provide these services

• ✅ Share clear information about who qualifies and how to access services

• ✅ Use a consistent, statewide tool to help determine eligibility and level of care

• ✅ Develop fair processes for service denials, appeals, or complaints

Note: This settlement does not include any direct payments to class members. MDHHS has agreed to pay attorney fees, but individuals will not be responsible for any legal costs.

Who is included?

Anyone under age 21 who:

• Lives in Michigan

• Has Medicaid

• Has been assessed by a licensed mental health provider as needing intensive home or community-based services

This group is considered part of the class in this class action lawsuit.

What do I need to do?

• 👍 Agree with the settlement? You don’t need to do anything.

• ❌ Don’t agree but don’t want to object formally? You also don’t need to take action.

• ✉️ Want to object? You must mail a written objection by June 17, 2025 to:

  • The Honorable Thomas L Ludington
    Re: 18-11795 KB v. MI Dept HH - Settlement Objections
    1000 Washington Ave.
    P.O. Box 216
    Bay City, MI 48708

• The Fairness Hearing will be held on August 27, 2025 at 2 p.m. in Bay City, Michigan. You may attend, and if you’ve filed an objection, you may be allowed to speak.

What do I need to do?

📄 Read the full Class Action Notice and Settlement Agreement
Click here to read the full agreement

📧 Questions about the settlement?
Email: KBSettlement@drmich.org

📧 Have questions or want to attend an info session?
Email MDHHS at: MDHHS-BCCHPS-Questions@michigan.gov

We encourage families, caregivers, providers, and community members to read the notice and share it with others who might be affected.