Bill Text: MI SB1000 | 2025-2026 | 103rd Legislature | Introduced
Bill Title: 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
Sponsorship: Moderate Partisan Bill (Democrat 7-1)
Status: (Introduced) 2026-05-21 - Referred To Committee On Housing And Human Services [SB1000 Detail]
Download: Michigan-2025-SB1000-Introduced.html
SENATE BILL NO. 1000
A bill to amend 1939 PA 280, entitled
"The social welfare act,"
(MCL 400.1 to 400.119b) by adding sections 109w and 109x.
the people of the state of michigan enact:
Sec. 109w. (1) The department must, in accordance with federal law and regulations, develop a prospective payment system under the medical assistance program for funding certified community behavioral health clinics.
(2) The payment system developed under subsection (1) must fully comply with all federal payment methodologies. The department shall apply for any necessary waivers and approvals from the federal Centers for Medicare and Medicaid Services.
(3) Subject to approval, the prospective payment system must be implemented before October 1, 2027.
(4) The department shall promulgate, or rely on existing, relevant policies and guidance to administer this section, including, but not limited to, policies that do all of the following:
(a) Ensure continuing compliance with the department's licensing and certification requirements.
(b) Mitigate conflicts of interest between certified community behavioral clinics and prepaid inpatient health plans or managed care entities to ensure that individuals experience no barriers in obtaining access to community mental health services programs.
(c) Clearly define retaliatory actions and ensure fair enforcement as provided under subsection (6).
(d) Outline the process for dispute resolution, including, but not limited to, the appointment of an independent adjudicator, a timeline for filing of disputes, and standards for selecting and compensating an independent adjudicator.
(5) The department shall review and establish a new base level for prospective payment system rates in accordance with federal guidance and must use actuarial sound methodologies to develop the rates described under this subsection. The department may develop and implement alternative payment structures to reward service effectiveness and quality improvement. The department has the discretion to pay the prospective payment system rates directly to certified community behavioral health clinics or through managed care, following federal guidance.
(6) The department shall establish penalties for a violation of the rules, including, but not limited to, imposition of fines, suspension of contracts, or loss of certification as a certified community behavioral health clinic. The department shall enforce the penalties established under this subsection.
(7) The department is not required to comply with this section unless the legislature appropriates sufficient funds to administer this section.
(8) As used in this section and sections 109v and 109x:
(a) "Certified community behavioral health clinic" means an entity that has been certified by the department in accordance with federal criteria and the protecting access to Medicare act of 2014, Public Law 113-93, or an appropriate change or waiver to the Medicaid state plan, and includes all of the following:
(i) A nonprofit or part of a local government behavioral health authority, agency, or organization.
(ii) An outpatient health program or facility operated under the authority of the Indian Health Service, an Indian tribe, or a tribal organization that is under a contract, grant, cooperative agreement, or compact with the Indian Health Service under the Indian self-determination act, 25 USC 5321 to 5332, or an urban Indian organization receiving funds under title V of the Indian health care improvement act, 25 USC 1651 to 1660i.
(b) "Prospective payment system" means a payment methodology that funds, in advance, a certified community behavioral health clinic for the anticipated costs of carrying out the direct and indirect clinical and administrative activities required of certified community behavioral health clinics.
Sec. 109x. (1) Beginning January 1, 2028, a new certified community behavioral health clinic site must not be established, operated, or designated within this state unless approved by the department in accordance with this section.
(2) The department shall develop and implement a certified community behavioral health clinic site review and approval process that must function in a manner substantially similar to a certificate of need program to ensure the appropriate distribution of certified community behavioral health clinic services and to prevent unnecessary duplication of services.
(3) In reviewing an application for a new certified community behavioral health clinic site, the department shall consider all of the following factors:
(a) The demonstrated need for additional behavioral health services in the proposed service area, including, but not limited to, all of the following factors:
(i) Population size.
(ii) Behavioral health prevalence rates.
(iii) Access disparities.
(b) The existing capacity and geographic distribution of currently certified community behavioral health clinic and community mental health service providers.
(c) Whether approval of the proposed site would result in an oversaturation of certified community behavioral health clinic providers in a geographic area, including, but not limited to, all of the following factors:
(i) Fragmentation of care.
(ii) Workforce dilution.
(iii) Financial instability among safety-net providers.
(4) The department shall give priority consideration to applications submitted by, or on behalf of, a community mental health services program. Any newly approved certified community behavioral health clinic site must be operated directly by a community mental health services program or under the authority and governance of a community mental health services program through a formal agreement approved by the department.
Enacting section 1. This amendatory act does not take effect unless Senate Bill No. 1001 of the 103rd Legislature is enacted into law.
