At Mantese Honigman, we are proud to have helped secure sweeping reforms to Michigan’s Medicaid mental health system for children and young adults. In a major civil rights case, our team represented a class of Medicaid eligible children and youth with serious mental and behavioral health needs who were not getting the services they needed in their homes and communities.
The result is an historic settlement that will reshape how mental health care is delivered to young people across the state. More than 100,000 children and young adults under age 21 are expected to benefit from these changes. The Michigan Legislature has already committed more than 100 million dollars to fund these reforms, and total investments are expected to reach into the hundreds of millions.
This case was about more than money. It was about a simple but powerful principle. Children with significant mental health needs have the right to receive medically necessary care in the most integrated and least restrictive setting possible. They should not be denied services in their homes and communities and then be left with no real option other than institutional care or crisis driven responses.
Our work in this case reflects our firm’s longstanding commitment to civil rights, disability rights, and the protection of vulnerable individuals whose voices are too often ignored in large public systems.
How the Case Began and the Rights at Stake
The lawsuit, D.D. by Next Friend B.N., et al., v. Michigan Department of Health and Human Services, et al., was conceived by Gerard Mantese and then filed in 2018 in the United States District Court for the Eastern District of Michigan, case number 1:18 cv 11795. The case was assigned to Judge Thomas L. Ludington.
Our clients were Medicaid eligible children and young adults with intensive mental and behavioral health conditions. They needed robust services in their homes and communities, yet those services were often not available, delayed, or inconsistently provided. As a result, many young people cycled through hospitals, institutions, or repeated crises rather than receiving stable, community based care.
The lawsuit alleged that Michigan violated the Medicaid Act’s Early and Periodic Screening, Diagnostic, and Treatment mandate. This federal requirement obligates states to ensure that children and young adults under 21 receive all medically necessary services covered by Medicaid. It is not enough to list services on paper. States must actually make those services available in a timely and effective manner.
Our claims were also grounded in the Supreme Court’s landmark Olmstead decision. That decision recognizes that people with disabilities have a right to live and participate in their communities rather than being unnecessarily segregated in institutions. For children, that means the chance to grow up at home, attend school, and be part of community life while receiving the supports they need.
In addition, the lawsuit alleged violations of the Americans with Disabilities Act, Section 504 of the Rehabilitation Act, and due process protections under the United States Constitution. Together, these laws create a strong framework that protects children with disabilities from discrimination and neglect by public systems.
The Sweeping Reforms Achieved Through the Settlement
After years of litigation and negotiation, the parties reached a comprehensive settlement that was approved on August 28, 2025. Rather than a one time payment, the agreement focuses on structural change. It requires the Michigan Department of Health and Human Services to redesign and strengthen its Medicaid behavioral health system for children and young adults under 21.
The reforms include several core commitments.
First, the state must ensure timely access to medically necessary intensive home and community based services across Michigan. This means that children with significant behavioral health needs should not face long waits or be left without services simply because of where they live. Intensive treatment that keeps children in their homes, schools, and communities must be available statewide.
Second, the settlement requires a standardized eligibility and assessment process. Children must be identified consistently and connected with services in a fair and equitable way, regardless of region or local practice. This reduces the risk that some families receive robust supports while others are turned away or given incomplete care.
Third, the state must significantly improve data collection and oversight. Michigan will track both the timeliness and adequacy of services, along with outcomes for children and families. Better data allows for better management. It helps identify gaps, highlight successful programs, and ensure accountability over time.
Fourth, the agreement calls for continuous quality improvement measures. Reform is not a one time event. It is an ongoing process. The state must regularly evaluate performance, make adjustments, and demonstrate progress rather than simply adopting policies on paper.
Finally, Michigan cannot simply declare victory and walk away. Before the state may exit from court supervision and monitoring by Class Counsel, it must show that it has the capacity to provide medically necessary mental health services to the children covered by the settlement. There is a five year target date for complete implementation of these reforms, but the key measure is real world performance, not just deadlines.
What This Victory Means for Children, Families, and the Future
This settlement represents a significant step forward for children’s mental health, disability rights, and civil rights in Michigan. It ensures that the promise of federal law is carried out in practice. Children and young adults with serious mental and behavioral health conditions should not have to fight on their own for basic services.
Our team at Mantese Honigman is honored to have served as counsel for the plaintiffs in this case. Attorneys Dave Honigman, Gerard Mantese, and Theresamarie Mantese, along with attorneys at other firms, JJ Conway, Kyle Williams, Kimberly Lewis, and Sarah Somers, devoted years of effort to reach this outcome. This result reflects the power of determined advocacy, careful legal work, led by Dave Honigman who was appointed Class Counsel.
If your child or a young person you care about has struggled to access needed mental or behavioral health services, or if you have questions about your rights under Medicaid, the Americans with Disabilities Act, or other civil rights laws, we encourage you to contact Mantese Honigman for answers. We are committed to protecting vulnerable individuals, enforcing legal rights, and working toward a future in which every child has a real chance to receive the care they need in the community they call home.