MDHHS is rolling out standardized referrals and assessment tools for Medicaid mental health services statewide, with implementation beginning in October 2025.
MDHHS framework updates
According to the Michigan Health & Hospital Association (MHA), the Michigan Department of Health and Human Services has introduced new requirements under the state’s Mental Health Framework. MHA says the changes are intended to strengthen assessments, referrals and care coordination for Medicaid enrollees.
MHA reports that the changes begin taking effect in October 2025. The association describes the work as an update affecting mental health providers and health plans involved in Medicaid services.
Standardized referral process
MHA says MDHHS will launch a standardized mental health referral policy that will be phased in during fiscal year 2026. The association says the policy aims to support timely and consistent referrals across Medicaid Health Plans and Prepaid Inpatient Health Plans.
According to MHA, Medicaid Health Plans, Prepaid Inpatient Health Plans and Community Mental Health Services Programs will initially participate in the referral process. Providers contracted with a Medicaid Health Plan but not part of a Community Mental Health Services Program will not be required to participate immediately.
MHA says the updated process includes one referral form and process across providers and plans. The association reports that the CareConnect360 referrals module will be used for referral tracking and information sharing among Medicaid Health Plans, Prepaid Inpatient Health Plans and Community Mental Health Services Programs. MHA also says Medicaid Health Plans will proactively monitor referrals.
Assessment tools and training
MHA reports that qualified mental health providers whose scope includes assessing mental health needs will be required to use standardized tools. According to the association, MichiCANS will be used for children and youth under age 21, while LOCUS will be used for adults age 21 and older.
MHA says training will continue throughout fiscal year 2026, and providers will not lose reimbursement while completing training. For MichiCANS, MHA reports that providers must complete both TCOM Orientation and MichiCANS Overview training, with additional sessions available through December 2025.
For LOCUS, MHA says registration will open when training resources are available. The association reports that providers may sign up through a survey to receive updates. MHA also notes that comparison rates and a frequently asked questions document are available on the Mental Health Framework webpage.
What this means for Michigan patients
MHA’s update indicates that Medicaid mental health referrals and assessments will move toward shared processes and tools as implementation proceeds. For people seeking treatment locally, this directory lists 55 published clinics in Michigan.
This is general information, not medical advice.
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This report is educational and is not medical advice. Coverage, availability and eligibility can change; verify details with the named source or your care team.