Human services: medical services; certified community behavioral health clinics; provide certification and funding for. Amends 1939 PA 280 (MCL 400.1 - 400.119b) by adding sec. 109p.

2023-2024 Regular Session Introduced by Noah Arbit and 26 co-sponsors

Prohibits state policy from conflicting with federal CCBHC definitions, establishes a process to add CCBHC sites, and requires continued federal participation unless Legislature vo

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Purpose

To ensure Michigan’s state policy and administrative processes support implementation and expansion of federally defined Certified Community Behavioral Health Clinics (CCBHCs), preserve continued state participation in the federal CCBHC program, and establish a state process for determining additional CCBHC sites while preventing state-level interference with federal CCBHC requirements.

Key provisions

Prohibits the state from implementing any policy that contradicts or interferes with federal definitions or requirements for a CCBHC. (MCL 400.109p(1))

Requires the state to develop a process to determine additional CCBHC sites within specific geographic regions, including provisions to address service-area overlap. (MCL 400.109p(2))

Requires the state to continue participation with the federal government to implement CCBHCs; the state may only opt out by an affirmative vote of the Legislature. (MCL 400.109p(3))

The act is contingent on enactment of companion legislation (House Bill 5371); HB 5372 does not take effect unless HB 5371 is enacted.

Note: HB 5371 (companion bill) would require the Department of Health and Human Services (DHHS) to develop a prospective payment system for CCBHCs, certify eligible community mental health centers and providers, adopt implementing rules (including dispute-resolution and anti‑retaliation provisions), apply for necessary federal waivers, and implement the payment system by federal approval (committee report cites an implementation deadline of October 1, 2027).

Who is affected

DHHS (policy, certification, rulemaking, waiver applications)

Community Mental Health Service Programs (CMHSPs), nonprofit and private behavioral health providers seeking CCBHC certification

Medicaid (state medical assistance program) and other payers interacting with CCBHCs

Individuals with mental health and substance use disorders who receive services (including insured and uninsured populations)

State budget and appropriations (see fiscal impact)

Fiscal impact (summarized)

Michigan participates in a federal CCBHC demonstration through Sept. 30, 2027.

FY 2024–25 DHHS appropriations for supplemental CCBHC costs: $525.9 million Gross ($128.4 million GF/GP) — supporting 33 CCBHCs across 30 counties, plus 3 additional sites.

Estimated average additional cost per new CCBHC: ~$14.5 million Gross (~$3.5 million GF/GP).

If the state continues CCBHC participation after the federal demo (which HB 5372 would require unless the Legislature votes to opt out), the reduced federal reimbursement rate could cost the state roughly $90 million annually (based on FY 2024–25 FMAP assumptions).

Procedural status & timeline

Introduced: Nov. 14, 2023 (Rep. Phil Green; multiple cosponsors).

Passed House: Dec. 12, 2024 (substitute H‑1 adopted; immediate effect requested).

Referred to Committee on Government Operations: Dec. 18, 2024.

Additional actions show subsequent referrals/readings in 2025 (e.g., referred to Elections Apr. 7, 2025).

Note: HB 5372 is expressly contingent on enactment of HB 5371 before it takes effect.

Prepared from House Fiscal Agency analysis and committee report materials (House Bills 5371 & 5372).

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