MedicaidAdministrativeMedium impact
MMP 25-41: Policy Updates Related to Establishing Self-Directed Budgeting for Habilitation Supports Waiver (HSW) Self-Directed Service Arrangements for Community Living Supports (CLS)
Michigan Medicaid - MDHHS·MI · Psychiatry, General Practice·Medical Policy
Effective date
Oct 1, 2025
We identified it
Jun 20, 2026
Summary
Michigan Medicaid is implementing new self-directed budgeting requirements for Habilitation Supports Waiver (HSW) Community Living Supports services. The policy establishes detailed requirements for developing individual budgets through person-centered planning, including specific staff wage considerations, transportation costs, and service scope documentation.
Action Required
Before October 1, 2025: Billing teams serving Michigan Medicaid HSW beneficiaries must update documentation processes to ensure Individual Plan of Service (IPOS) includes detailed scope, duration, and cost breakdown for Community Living Supports services. Staff must coordinate with PIHPs/CMHSPs during person-centered planning to establish agreed budgets that include staff wages, benefits, transportation costs, and activity-specific expenses. Update systems to track self-directed service arrangements separately from traditional CLS services.