Michigan Blue Cross to limit mental health benefit. Will thousands lose care?

June 13, 2026

Blue Cross Blue Shield of Michigan, the state's dominant insurer with nearly 70% of the commercial market, will stop covering limited-license therapists in private practice starting March 1, potentially affecting thousands of patients and approximately 13,000 mental health professionals. The insurer claims the policy change is driven by quality-of-care concerns and will push newly licensed therapists to train in hospitals, accredited psychiatric centers, or community mental health agencies where oversight is stronger. However, therapists and practice owners argue the move is cost-motivated and will devastate private practices, force patient-therapist separations, and eliminate crucial training pathways for new mental health professionals in a state already experiencing severe workforce shortages.

Who is affected

Thousands of Michigan patients/Blue Cross beneficiaries who currently see limited-license therapists
Approximately 13,000 limited-license social workers, counselors, psychologists, and family and marriage therapists in Michigan
Private practice owners like Jacob Moon (Relational Therapy Collective), Gina Merritt (Solace Counseling Services), Robb Kornoelje (The Truism Center), and Chris DeBoer (Spring Forest Counseling)
Students in Allendale and Coopersville schools receiving therapy services
An estimated 250 clients at Truism Center alone
Future therapists seeking training opportunities toward full licensure

What action is being taken

Blue Cross Blue Shield of Michigan is implementing a new policy effective March 1 that ends coverage for limited-license therapists in private offices
The insurer notified providers of the change on May 29
Practice owners are preparing to potentially terminate limited-license staff or restructure their practices
Some practices are considering pursuing accreditation as outpatient psychiatric centers to maintain reimbursement eligibility

Why it matters

This policy change matters because it occurs during a severe mental health workforce shortage in Michigan, potentially reducing access to care when providers are already "swamped all the time." The disruption of established therapeutic relationships can be traumatic for patients, particularly those dealing with depression or long-term therapy needs, and may cause some to abandon treatment altogether. The change also threatens the training pipeline for future fully-licensed therapists, as limited-license practitioners need supervised hours to advance their credentials. With Blue Cross holding nearly 70% of Michigan's commercial insurance market, this policy has outsized impact on the entire mental health care ecosystem in the state.

What's next

The policy takes effect March 1
Practice owners will need to decide whether to let limited-license staff go or pursue accreditation as outpatient psychiatric centers (requiring addition of staff such as psychiatrists)
Affected patients and families will need to find replacement therapists
Private practices may close due to loss of reimbursements for limited-license staff

Read full article from source: bridgedetroit.com