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SB 1000

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 secs. 109w & 109x. TIE BAR WITH: SB 1001'26

2025-2026 Regular Session Introduced by Rosemary Bayer and 7 co-sponsors

Establishes a state framework with a certified community behavioral health clinic PPS and a site-approval process to fund, regulate, and expand community mental health services in

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Bill Summary · SB 1000

Summary of SB 1000 (Michigan, 2025-2026)

SB 1000 would amend the Social Welfare Act (1939 PA 280) by adding two new sections—109w and 109x—to establish a state framework for certified community behavioral health clinics (CCBHCs), including a prospective payment system (PPS), a site review/approval process, and related governance requirements. The measure ties its effectiveness to a companion bill (SB 1001).

Purpose and Intent

  • Create a state-approved model for funding and regulating certified community behavioral health clinics to expand access to community-based mental health services.
  • Align Michigan’s funding and oversight with federal guidelines (including provisions of the Protecting Access to Medicare Act of 2014 and related Medicaid state plan changes) and ensure actuarially sound payment methodologies.
  • Establish a controlled rollout with a focus on avoiding service duplication, managing costs, and safeguarding access to care.

Key Provisions

Sec. 109w — Prospective Payment System for CCBHCs

  • The Department of Health or relevant agency must develop a PPS under Michigan’s Medical Assistance program to fund certified community behavioral health clinics.
  • The PPS must comply with federal payment methodologies; the state must seek waivers/approvals from CMS as needed.
  • Target implementation of the PPS: before October 1, 2027, subject to appropriation.
  • The Department must promulgate or rely on existing policies to administer the section, addressing:
    • Licensing and certification compliance.
    • Mitigation of conflicts of interest between CCBHCs and prepaid inpatient health plans/managed care entities to ensure access.
    • Definition of retaliatory actions and fair enforcement.
    • Dispute resolution processes, including potential appointment of an independent adjudicator, timelines for filing disputes, and compensation standards for adjudicators.
  • The Department must review and establish a new base level for PPS rates using actuarially sound methodologies and may adopt alternative structures to reward effectiveness and quality.
  • The PPS can be paid directly to CCBHCs or through managed care, per federal guidance.
  • Penalties for violations (fines, contract suspensions, or loss of CCBHC certification) may be imposed and enforced.

  • The Department’s compliance with this section is contingent on sufficient legislative appropriations.

  • Definitions:

    • “Certified community behavioral health clinic” means entities certified under federal criteria (e.g., as defined by the Protecting Access to Medicare Act of 2014) or approved Medicaid state plan changes, including nonprofits, government-related entities, or services connected to tribal/Indian Health Service arrangements.
    • “Prospective payment system” funds anticipated costs in advance for direct/indirect clinical and administrative activities.

Sec. 109x — CCBHC Site Review and Approval Process

  • Starting January 1, 2028, no new CCBHC site may be established or designated without Department approval.
  • The Department must implement a site review/approval process akin to a certificate-of-need (CON) program to prevent unnecessary duplication and manage distribution of services.
  • When reviewing a new site application, the Department must consider:
    • Demonstrated need (population size, behavioral health prevalence, access disparities).
    • Existing capacity and geographic distribution of current CCBHCs and community mental health providers.
    • Potential oversaturation risks (fragmentation of care, workforce dilution, financial instability among safety-net providers).
  • Priority will be given to applications from or for community mental health services programs.
  • Any newly approved CCBHC site must be operated directly by, or under the governance of, a community mental health services program, via a formal agreement approved by the Department.

Effective Date and Ties

  • Enactment is contingent on the passage of SB 1001 (the companion bill).
  • The PPS implementation is targeted for before October 1, 2027, with a site-approval regime in effect from January 1, 2028.

Who Is Affected

  • Certified community behavioral health clinics (and potential clinics considering certification).
  • Community mental health services programs and affiliated providers.
  • Managed care entities and prepaid inpatient health plans interacting with CCBHCs.
  • The Michigan Department responsible for health, behavioral health policy, licensing, and certification.
  • Eligible beneficiaries of the Michigan Medical Assistance program (Medicaid) receiving behavioral health services.

Procedural and Timeline Highlights

  • Requires federal waivers/approvals where necessary.
  • The PPS rate-setting must be actuarially sound and may include performance/quality incentives.
  • A formal dispute resolution framework and independent adjudicator mechanism are contemplated.
  • A CON-like site approval process would be in place starting 2028 for new CCBHC sites.
  • Funding for these provisions depends on targeted legislative appropriations.

Notable Considerations

  • The bill is a tie-bar with SB 1001, meaning SB 1000’s enactment is dependent on SB 1001 becoming law.
  • The proposal emphasizes access, quality, cost controls, and avoidance of care fragmentation through structured governance and oversight.

If you’d like, I can provide a point-by-point comparison with current Michigan law or map out potential fiscal impacts based on typical CCBHC PPS models.

Compiled from official sources — confirm details with the bill’s official record.

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