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March 18 2026 LOCD Passive Redetermination Reinstated as of March 20th

March 18, 2026: Attention Nursing Facility and MI Coordinated Health providers: This notification is an update to the previously issued alert posted on January 22, 2026, advising LOCD passive redeterminations generated from the MDS 3.0 assessment would be placed on hold until further notice.

MDHHS will reinstate the LOCD Passive Redetermination process for all incoming MDS assessments starting Friday, March 20, 2026.

Note: MDHHS is unable to calculate a Door 2 during the passive redetermination process when a BIMS (Brief Interview for Mental Status – Section C) is completed on the MDS 3.0. As a result, there is a possibility that the passive redetermination process may generate a Door 87 LOCD, indicating that eligibility could not be determined.  In this event, providers will be required to complete a new LOCD in CHAMPS within 45 days or less to prevent payment issues.

As a reminder providers are responsible for monitoring all LOCD end dates and conducting a new LOCD as the current record nears the end date, with a significant change in condition, or when a provider possesses information that a beneficiary may no longer meet eligibility.

LOCD Passive Redetermination Resources:

  • Medicaid Provider Alerts and Resources click on the Institutional section and refer to the LOCD Passive Redetermination RecordingPDFQ&A
  • Medicaid Provider Manual, Nursing Facility Level of Care Determination Chapter and section: 3.8 Passive Redetermination of Functional Eligibility.
    • 3.8.A. LOCD Doors Addressed by Passive Assessment
    • 3.8.B. Passive Redetermination Process
    • 3.8.C. Passive Redetermination Decisions
    • 3.8.D. Need to Conduct a New LOCD