1. Program Definition and Services 

Residential habilitation services in Michigan are designed to support individuals with developmental disabilities or other conditions, enabling them to live independently in community settings. These services include habilitative care, such as community living supports, out-of-home non-vocational habilitation, prevocational services, and supported employment, which are often funded through Medicaid waivers like the Habilitation Supports Waiver (HSW) and MI Choice Waiver. 

2. Regulations 

Key regulations governing residential habilitation services include: 

• Michigan Mental Health Code: Defines developmental disabilities and outlines requirements for services. 

• Medicaid Regulations: Services must comply with Medicaid standards for reimbursement, including the Home and Community-Based Services (HCBS) Final Rule. 

• HCBS Final Rule: Ensures that settings are integrated into the community, providing choice and autonomy for residents. 

3. Licensing or Certification 

To operate as a residential habilitation service provider, you typically need to be licensed by the Michigan Department of Licensing and Regulatory Affairs (LARA), specifically through the Bureau of Community and Health Systems. Certification may also be required for specific services or staff qualifications. 

4. Responsible State Agency 

The Michigan Department of Health and Human Services (MDHHS) oversees Medicaid-funded services, while LARA handles licensing for facilities. 

5. Application Process 

The application process involves submitting forms to LARA for facility licensing and enrolling as a Medicaid provider through the CHAMPS (Community Health Automated Medicaid Processing System) online platform. 

6. Required Documentation 

Business Registration Documents: Proof of business registration in Michigan. 

Insurance and Liability Coverage: Proof of adequate insurance coverage. 

Staff Qualifications: Documentation of staff qualifications, including training records. 

Facility License Application: Completed application for facility licensing through LARA. 

Medicaid Enrollment Forms: Completed forms for Medicaid provider enrollment. 

7. Timeline for Approval 

The approval timeline varies depending on the completeness of the application and specific requirements. Generally, it can take several weeks to a few months. 

8. Pre-Application Process 

There is no specific pre-license application process, but potential providers should familiarize themselves with state regulations and requirements before applying. 

9. Pre-Application Training 

While not explicitly mandated as a pre-application requirement, providers must ensure their staff are trained in recipient rights and other necessary areas before delivering services. Training requirements are detailed in Attachment I of the CMHSP contract. 

10. Additional Notes 

• Compliance with HCBS Final Rule: Providers must ensure their settings meet the HCBS Final Rule criteria, including resident autonomy and community integration. 

• Choice of Providers: Beneficiaries must have the freedom to choose their providers.