The Michigan Department of Health and Human Services (MDHHS) recently introduced new requirements under the state’s Mental Health Framework to strengthen assessments, referrals and care coordination for Medicaid enrollees. These changes take effect beginning October 2025.

Standardized Referrals

The MDHHS will launch a standardized mental health referrals policy, which will be phased in during fiscal year (FY) 2026, aiming to ensure timely and consistent referrals across Medicaid Health Plans (MHPs) and Prepaid Inpatient Health Plans (PIHPs).

Key elements include:

• A single referral form and process across providers and plans.
• Use of the CareConnect360 (CC360) referrals module for tracking and information sharing across MHPs, PIHPs and Community Mental Health Services Programs (CMHSPs).
• Proactive monitoring of referrals by MHPs.

Initially, MHPs, PIHPs and CMHSPs will participate in the new referral process. Providers contracted with MHPs but not part of a CMHSP will not be required to participate immediately.

Standardized Assessments

Qualified mental health providers whose scope includes assessment of mental health needs will be required to use standardized tools:

• MichiCANS: for children and youth under age 21.
• LOCUS: for adults 21 and older.

Training will continue throughout FY 2026, and providers will not lose reimbursement while completing training.

• MichiCANS: Requires completion of both TCOM Orientation and MichiCANS Overview trainings. Additional sessions are available through December 2025. Providers are encouraged to register.
• LOCUS: Registration will open once training resources are available. Providers may sign up through a survey to receive updates.

Members may reference two new resources, which include comparison rates and a frequently asked questions document on the Mental Health Framework webpage.

Members with questions may contact Lenise Freeman at the MHA.

Phone: (517) 323-3443
Fax: (517) 323-0946

Phone: (517) 703-8601
Fax: (517) 703-0628