MedicaidReimbursementMedium impact
MSA 21-34
Michigan Medicaid - MDHHS·MI · Psychiatry·Provider Bulletin
Effective date
Oct 1, 2021
We identified it
Jun 20, 2026
Summary
Michigan is implementing a new CCBHC demonstration program effective October 1, 2021, creating enhanced behavioral health clinics with 24/7 crisis services and a new prospective payment system. This affects Medicaid, Healthy Michigan Plan, and MIChild programs for mental health and substance use disorder services across 14 designated sites in 18 counties.
Action Required
By October 1, 2021: Billing teams at the 14 designated CCBHC sites must update billing systems to use the new site-specific PPS-1 payment rates for CCBHC encounters (only one payment per day regardless of number of encounters). Verify patient eligibility includes any mental health or SUD ICD-10 diagnosis. Update contracts and workflows to ensure CCBHC payments are received within 60 days of service month.