MedicaidAdministrativeMedium impact
MMP 23-56: Centers for Medicare & Medicaid Services (CMS) Certified Community Behavioral Health Clinic (CCBHC) Demonstration
Michigan Medicaid - MDHHS·MI · Psychiatry·Specialty Services
Effective date
Nov 1, 2023
We identified it
Jun 20, 2026
Summary
Michigan has implemented a new CCBHC demonstration program effective November 1, 2023, that establishes special certification requirements and payment methodology for community behavioral health clinics serving Medicaid beneficiaries with mental health or substance use disorders. CCBHCs will receive prospective payment system rates and must submit specific encounter codes with T1040 service codes for reimbursement.
Action Required
For Michigan providers only: If your practice is eligible and interested in becoming a CCBHC demonstration site, review the CCBHC Demonstration Handbook on the MDHHS website for certification requirements. Billing teams at certified CCBHCs must update systems to submit valid CCBHC Encounter Codes with corresponding T1040 service encounter codes to receive the prospective payment system rates. Non-compliance will result in non-payment for CCBHC services.