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Michigan Medicaid - MDHHSMedicaid · Billing Codes · Claims & Billing · MI · PsychiatryMedium impact

MMP 26-29: Certified Community Behavioral Health Clinic (CCBHC) Demonstration Direct Payment Transition

Effective date
Oct 1, 2025
Identified
Aug 1, 2026

Summary

Michigan's MMP 26-29 bulletin updates provider enrollment, billing and reimbursement requirements for the Certified Community Behavioral Health Clinic (CCBHC) Demonstration for the payment model transition, effective October 1, 2025. CCBHCs must enroll as a CCBHC provider type with a Type 2 NPI specific to CCBHC services, and a service is recognized as a CCBHC service only when the claim includes HCPCS code T1040, the qualifying CCBHC HCPCS or CPT code, and a qualifying diagnosis. CCBHCs bill a clinic-specific PPS-1 daily rate, which is paid only for Medicaid-eligible beneficiaries, and services delivered by a designated collaborating organization must be submitted with identifying DCO information in loop 2310C or 2420C.

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What to do

Action · 6 steps
01Already effective October 1, 2025: Confirm the clinic holds MDHHS certification and enrolls in CHAMPS as a CCBHC provider type under the 'specialty programs' enrollment type, using a Type 2 NPI specific to CCBHC services.
02Submit each CCBHC claim to CHAMPS with HCPCS T1040, the qualifying CCBHC HCPCS or CPT code, a qualifying diagnosis, and the Medicaid ID of the person served.
03Bill the PPS rate only at certified CCBHC locations or in the community using the CCBHC-specific billing NPI.
04Do not bill Medicaid beneficiaries for crisis, screening or assessment services without an eligible CCBHC diagnosis.
05Do not bill for DCO services before MDHHS approves the DCO agreement.
06Report DCO services with DCO information in loop 2310C or 2420C.

Codes mentioned

T1040

Original notice

MMP 26-29: Certified Community Behavioral Health Clinic (CCBHC) Demonstration Direct Payment Transition
michigan.gov · Always check the source before changing claims.
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