Drop-in Center...
A Medicaid Billable Service

Peer-run Drop-in Centers are a Medicaid Billable Service in the state of Michigan.  The following is the word-for-word explaination out of the Michigan Medicaid Manual: 

17.3.H.2. D

Peer-Run Drop-In Centers provide an informal, supportive environment to assist

beneficiaries with mental illness in the recovery process. If a beneficiary chooses to participate in Peer-Run Drop-In Center services, such services may be included in an IPOS if medically necessary for the beneficiary. Peer-Run Drop-In Centers provide opportunities to learn and share coping skills and strategies, to move into more active assistance and away from passive beneficiary roles and identities, and to build and/or enhance self-esteem and self-confidence. Under no circumstances may Peer-Run Drop-In Centers be used as respite for caregivers (paid or non-paid) or residential providers of individuals.


PIHPs must seek approval from MDCH prior to establishing new drop-in programs.

Proposed drop-in centers will be reviewed against the following criteria:


  • Staff and board of directors of the center are 100% primary consumers;


  • PIHP actively supports consumers’ autonomy and independence in making day-to-day decisions about the program;


  • PIHP facilitates consumers’ ability to handle the finances of the program;


  • The drop-in center is at a non-CMH site;


  • The drop-in center has applied for 501(c)(3) non-profit status;


  • There is a contract between the drop-in center and the PIHP, or its subcontractor, identifying the roles and responsibilities of each party; and


  • There is a liaison appointed by the PIHP to work with the program.

Some beneficiaries use drop-in centers anonymously and do not have a drop-in center listed as a service in their IPOS. For those beneficiaries who do have drop-in specified in their IPOS, it must be documented to be medically necessary and identify:


  • Goals and how the program supports those goals; and


  • The amount, scope and duration of the services to be delivered.

The individual clinical record provides evidence that the services were delivered

consistent with the plan.  





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