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MMP 23-56: Centers for Medicare & Medicaid Services (CMS) Certified Community Behavioral Health Clinic (CCBHC) Demonstration
Effective date
Nov 1, 2023
Identified
Jun 20, 2026
Summary
Effective November 1, 2023, Michigan Medicaid sets the operating rules for Certified Community Behavioral Health Clinics (CCBHCs) under the CMS CCBHC Demonstration. CCBHCs must serve all individuals regardless of county of residency, insurance coverage, age, severity of need or ability to pay, and must provide nine core services directly or through designated collaborating organizations. CCBHCs receive a daily clinic-specific prospective payment rate, and CCBHC encounter codes must be submitted with a corresponding T1040 service encounter code to receive payment.
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What to do
Action · 5 steps
01Already effective November 1, 2023: Submit valid CCBHC Encounter Codes cited in Appendix A of the CCBHC Demonstration Handbook, each with a corresponding T1040 service encounter code, to receive payment.
02For services provided by a designated collaborating organization, DCO encounters are treated as CCBHC encounters for purposes of the prospective payment system, and payment is provided directly to the DCO from the CCBHC based on agreed contractual service rates.
03Non-Medicaid individuals should be tracked using encounter reporting and other methods outlined in the CCBHC Demonstration Handbook.
04CCBHCs must collect, report and track encounter, outcome and quality data as federally required or requested by MDHHS.
05Check current applicability in the CCBHC Demonstration Handbook before relying on this guidance.
Codes mentioned
T1040
Original notice
MMP 23-56: Centers for Medicare & Medicaid Services (CMS) Certified Community Behavioral Health Clinic (CCBHC) Demonstration
michigan.gov · Always check the source before changing claims.
Related changes
See all Michigan Medicaid - MDHHS changes →MMP 26-29: Certified Community Behavioral Health Clinic (CCBHC) Demonstration Direct Payment TransitionMediumEffective Oct 1, 2025 · Claims & BillingMSA 21-34MediumEffective Oct 1, 2021 · Provider BulletinMMP 25-40: Updates to the MDHHS Medicaid Provider Manual; Behavioral and Physical Health and Aging Services Administration (BPHASA) Reorganized and Renamed Health ServicesMediumEffective Oct 1, 2025 · Medical PolicyBrowse every Michigan Medicaid - MDHHS change in the policy list