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WES MOORE, Governor Ch. 218
Chapter 218
(Senate Bill 39)
AN ACT concerning
Behavioral Health – Certified Community Behavioral Health Clinics and
Outpatient Mental Health Centers – Reimbursement Rates Rate Methodology
Modernization – Workgroup Establishment and Study
FOR the purpose of requiring the Maryland Department of Health, rather than the
Behavioral Health Administration and the Medical Care Programs Administration,
to conduct a certain rate–setting study; requiring the Department to review and
implement certain recommendations and administer certain tools and oversee
certain submissions required to support a certain study; requiring the Maryland
Health Care Commission to assist the Department with the facilitation of a certain
study; altering the date by which the rate–setting study is to be completed; requiring
the Secretary of Health, or the Secretary’s designee, to designate a representative of
the Administration to be a certain technical liaison; authorizing the Commission,
rather than the Department, to require community providers to submit certain
information for the completion of a certain report; altering certain requirements
related to the submission of a certain interim report and when certain annual reports
must be submitted; establishing the Workgroup on Certified Behavioral Health
Clinic Implementation and Rate Methodology Modernization in the Behavioral
Health Administration Commission to develop certain reimbursement
methodologies for certified community behavioral health clinics, outpatient mental
health centers, and independent outpatient providers; requiring the Maryland
Department of Health to conduct a certain rate study of outpatient mental health
centers in the State; requiring the Department to convene an outpatient mental
health services rate reform advisory panel to review and approve a certain rate
methodology; requiring the Department to increase the Maryland Medical
Assistance Program reimbursement rate for outpatient mental health centers by a
certain percentage in certain fiscal years; and generally relating to certified
community behavioral health clinics and outpatient mental health centers
behavioral health rate methodology modernization.
BY repealing and reenacting, with amendments,
Article – Health – General
Section 16–201.3(e) and (h)
Annotated Code of Maryland
(2023 Replacement Volume and 2025 Supplement)
BY adding to
Article – Health – General
Section 7.5–211 and 15–160
Annotated Code of Maryland
(2023 Replacement Volume and 2025 Supplement)
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Ch. 218 2026 LAWS OF MARYLAND
Preamble
WHEREAS, The State has operated certified community behavioral health clinics
(CCBHC) under limited federal grant funding since 2018, serving thousands of State
residents with integrated mental health and substance use care; and
WHEREAS, The CCBHC model has demonstrated improvements in access, care
coordination, health outcomes, and reductions in emergency department utilization and
inpatient stays; and
WHEREAS, The State must move from a grant–funded pilot approach to CCBHCs
to a sustainable statewide model with a clear rate methodology, ensuring that behavioral
health providers can continue to deliver high–quality, evidence–based, value–driven care;
and
WHEREAS, Outpatient mental health centers (OMHC) are a cornerstone of the
State’s behavioral health system, providing community–based treatment for individuals
with serious mental health conditions; and
WHEREAS, OMHCs are in financial crisis due to inadequate and outdated
reimbursement rates that fail to reflect the true cost of service delivery, workforce needs,
and compliance requirements; and
WHEREAS, The State currently lacks a formal, transparent rate–setting
methodology for OMHCs and CCBHCs, leading to inconsistent and unsustainable
reimbursement practices; and
WHEREAS, The closure of OMHCs, such as in Frederick County, demonstrates the
urgent risk to access and continuity of care across the State if rate inadequacies remain
unaddressed; and
WHEREAS, The General Assembly recognizes the importance of establishing parity
between behavioral health and somatic health services, including through transparent,
cost–driven rate reform; now, therefore,
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Article – Health – General
16–201.3.
(e) (1) IN THIS SUBSECTION, “COMMISSION” MEANS THE MARYLAND
HEALTH CARE COMMISSION.
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WES MOORE, Governor Ch. 218
[(1)] (2) [The Behavioral Health Administration and the Medical Care
Programs Administration jointly] ON OR BEFORE JUNE 30, 2028, THE DEPARTMENT
shall:
(i) Conduct an independent cost–driven, rate–setting study to set
community provider rates for community–based behavioral health services that includes a
rate analysis and an impact study that considers the actual cost of providing
community–based behavioral health services;
[(ii) Develop and implement a payment system incorporating the
findings of the rate–setting study conducted under item (i) of this paragraph, including
projected costs of implementation and recommendations to address any potential shortfall
in funding; and]
(II) REVIEW AND IMPLEMENT THE RECOMMENDATIONS OF THE
WORKGROUP ON BEHAVIORAL HEALTH RATE METHODOLOGY MODERNIZATION
ESTABLISHED BY CHAPTER 218 OF THE ACTS OF THE GENERAL ASSEMBLY OF 2026;
AND
(III) ADMINISTER COST–REPORTING TOOLS AND OVERSEE
COST–REPORT SUBMISSIONS REQUIRED TO SUPPORT THE STUDY REQUIRED UNDER
ITEM (I) OF THIS PARAGRAPH.
(3) THE COMMISSION SHALL ASSIST THE DEPARTMENT WITH THE
FACILITATION OF THE RATE–SETTING STUDY REQUIRED UNDER PARAGRAPH (2)(I)
OF THIS SUBSECTION, INCLUDING BY:
[(iii)] (I) [Consult] CONSULTING with stakeholders, including
community providers and individuals receiving services[, in conducting the rate–setting
study and developing the payment system required by this paragraph]; AND
(II) PROVIDING ANALYTICAL SUPPORT AND TECHNICAL
ASSISTANCE.
(4) THE BEHAVIORAL HEALTH ADMINISTRATION AND THE MEDICAL
CARE PROGRAMS ADMINISTRATION JOINTLY SHALL:
(I) DEVELOP AND IMPLEMENT A PAYMENT SYSTEM
INCORPORATING THE FINDINGS OF THE RATE–SETTING STUDY CONDUCTED UNDER
PARAGRAPH (2)(I) OF THIS SUBSECTION; AND
(II) CONSULT WITH STAKEHOLDERS, INCLUDING COMMUNITY
PROVIDERS AND INDIVIDUALS RECEIVING SERVICES, IN DEVELOPING THE PAYMENT
SYSTEM REQUIRED UNDER ITEM (I) OF THIS PARAGRAPH.
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Ch. 218 2026 LAWS OF MARYLAND
[(2) The Administration, on or before September 30, 2019, shall complete
the study required under paragraph (1)(i) of this subsection.]
[(3)] (5) The Administration shall adopt regulations to implement the
payment system required by paragraph [(1)] (4)(I) of this subsection.
(6) (I) THE SECRETARY, OR THE SECRETARY’S DESIGNEE, SHALL
DESIGNATE A REPRESENTATIVE OF THE ADMINISTRATION TO SERVE AS A
TECHNICAL LIAISON BETWEEN THE DEPARTMENT AND THE COMMISSION.
(II) THE TECHNICAL LIAISON SHALL:
1. PROVIDE TECHNICAL INPUT FOR THE COMPLETION
OF THE STUDY REQUIRED UNDER PARAGRAPH (2)(I) OF THIS SUBSECTION
REGARDING MEDICAID POLICY, BEHAVIORAL HEALTH REIMBURSEMENT
STRUCTURES, AND EXISTING DATA SOURCES;
2. ENSURE CONTINUITY BETWEEN THE DEPARTMENT’S
WORK REGARDING THE COMPLETION OF THE STUDY REQUIRED UNDER PARAGRAPH
(2)(I) OF THIS SUBSECTION AND THE COMMISSION’S FACILITATION OF THE
WORKGROUP ON BEHAVIORAL HEALTH RATE METHODOLOGY MODERNIZATION
ESTABLISHED UNDER CHAPTER 218 OF THE ACTS OF THE GENERAL ASSEMBLY OF
2026; AND
3. COORDINATE THE COMMISSION’S ACCESS TO
EXISTING ANALYTICAL WORK OR STUDY PREPARATION THAT HAS BEEN COMPLETED
BY THE DEPARTMENT IN COMPLYING WITH PARAGRAPH (2) OF THIS SUBSECTION.
(h) (1) On or before [December] JANUARY 1, [2018] 2028, the [Department]
COMMISSION shall submit an interim report to the Governor and, in accordance with §
2–1257 of the State Government Article, the General Assembly on [the]:
(I) THE delivery system through which community–based
behavioral health services should be provided;
(II) THE STATUS OF THE IMPLEMENTATION OF THE
RECOMMENDATIONS OF THE WORKGROUP ON BEHAVIORAL HEALTH RATE
METHODOLOGY MODERNIZATION ESTABLISHED UNDER CHAPTER 218 OF THE
ACTS OF THE GENERAL ASSEMBLY OF 2026; and [any]
(III) ANY preliminary recommendations regarding the payment
system required under this section.
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WES MOORE, Governor Ch. 218
(2) On or before December 1, [2019] 2028, and on or before December 1
each year thereafter, the [Department] COMMISSION shall submit a report to the
Governor and, in accordance with § 2–1257 of the State Government Article, the General
Assembly on the impact of the rate adjustments and the payment system required under
this section on community providers, including the impact on:
(i) The wages and salaries paid and the benefits provided to direct
care staff and licensed clinicians employed by community providers;
(ii) The tenure and turnover of direct care staff and licensed
clinicians employed by community providers; and
(iii) The ability of community providers to recruit qualified direct
care staff and licensed clinicians.
(3) The [Department] COMMISSION may require a community provider to
submit, in the form and manner required by the [Department] COMMISSION, information
that the [Department] COMMISSION considers necessary for completion of the report
required under paragraph (2) of this subsection.
SECTION 2. AND BE IT FURTHER ENACTED, That:
(a) There is a Workgroup on Behavioral Health Rate Methodology Modernization
in the Maryland Health Care Commission.
(b) The purpose of the Workgroup is to develop transparent, cost–based
reimbursement methodologies for certified community behavioral health clinics, outpatient
mental health centers, and independent outpatient providers using federally required and
existing cost–study data as the foundation for future rate reform.
(c) The Workgroup consists of the following members:
(1) one member of the Senate of Maryland, appointed by the President of
the Senate;
(2) one member of the House of Delegates, appointed by the Speaker of the
House;
(3) the Executive Director of the Maryland Health Care Commission, or the
Executive Director’s designee;
(4) one representative of the Maryland Medical Assistance Program,
designated by the Secretary of Health;
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Ch. 218 2026 LAWS OF MARYLAND
(5) the representative of the Behavioral Health Administration designated
as technical liaison under § 16–201.3(e)(6) of the Health – General Article, as enacted by
Section 1 of this Act;
(6) three representatives of community behavioral health providers
designated by the Community Behavioral Health Association of Maryland, including:
(i) at least one provider from a certified community behavioral
health clinic participating in the federal demonstration; and
(ii) at least one provider from an outpatient mental health center;
(7) one representative of the Licensed Clinical Professional Counselors of
Maryland, designated by the President of the Association;
(8) one representative of MedChi, the Maryland State Medical Society,
designated by the Executive Director of MedChi; and
(9) the following members, jointly appointed by the Speaker of the House
and the President of the Senate:
(i) one representative of a statewide hospital association;
(ii) one representative of a specialty psychiatric hospital;
(iii) one representative of a consumer or peer–led behavioral health
advocacy organization;
(iv) one independent actuarial or health–economics expert with
Medicaid experience; and
(v) any additional members determined necessary by the cochairs in
consultation with the Workgroup.
(d) The President of the Senate and the Speaker of the House jointly shall
designate one legislative member and one provider member to serve as cochairs of the
Workgroup.
(e) The Maryland Health Care Commission, in consultation with the Maryland
Department of Health, the Department of Legislative Services, and the Community
Behavioral Health Association of Maryland, shall provide staff for the Workgroup.
(f) A member of the Workgroup:
(1) may not receive compensation as a member of the Workgroup; but
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WES MOORE, Governor Ch. 218
(2) is entitled to reimbursement for expenses under the Standard State
Travel Regulations, as provided in the State budget.
(g) The Workgroup shall:
(1) use the federally required certified community behavioral health clinic
cost study as the baseline dataset for evaluating outpatient mental health service costs in
the State;
(2) review and analyze cost drivers for outpatient behavioral health
services, including:
(i) staffing mix and workforce models;
(ii) medical director and clinical supervision requirements;
(iii) contractor versus salaried structures;
(iv) geographic and volume variation;
(v) compliance with State and federal regulatory requirements,
including COMAR 10.63;
(vi) differentiation of costs between nonprofit and for–profit
organizations;
(vii) ratio of services delivered by telehealth; and
(viii) size and volume of group–based services;
(3) approve methodologies for analyzing outpatient costs and the Maryland
Department of Health’s completion of the study required under § 16–201.3(e)(2)(i) of the
Health – General Article, as enacted by Section 1 of this Act, that include:
(i) cost reporting structures;
(ii) sampling methodologies that exclude all programs founded after
2020;
(iii) allocation of overhead and administrative costs;
(iv) differentiation of the treatment of revenues of providers that are
from Medicaid and sources other than Medicaid; and
(v) modeling approaches used to estimate sustainable
reimbursement rates;
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Ch. 218 2026 LAWS OF MARYLAND
(4) evaluate reimbursement methodologies used in other states and federal
demonstration programs;
(5) (i) subject to item (ii) of this item, develop one or more cost–based,
rate–setting methodologies applicable to certified community behavioral health clinics,
outpatient mental health centers, and independent outpatient providers that include:
1. re–evaluating and rebasing reimbursement rates under
the Certified Community Behavioral Health Clinic Payment Model in demonstration year
two and every 3 years thereafter;
2. assumptions, cost–model components, and inflationary
adjustments; and
3. integration of data and analyses produced under the
cost–driven rate–setting study required under § 16–201.3(e)(2)(i) of the Health – General
Article, as enacted by Section 1 of this Act, to the extent the data and analyses are available;
and
(ii) build on all previously completed and ongoing cost–reporting and
analytical work related to setting community provider rates for community–based
behavioral health services in developing methodologies under item (i) of this item,
including, to the extent available:
1. the independent cost–driven analysis required under §
16–201.3(e)(2)(i) of the Health – General Article, as enacted by Section 1 of this Act;
2. the certified community behavioral health clinic cost and
rate study required by the 2025 Joint Chairmen’s Report; and
3. cost reporting tools and submission review processes
required under § 16–201.3(e)(2)(iii) of the Health – General Article, as enacted by Section
1 of this Act;
(6) ensure all recommended methodologies comply with both federal
Medicaid financing rules and the Medicaid Upper Payment Limit and provide
recommendations on strategies to implement the recommended methodologies while
remaining compliant with federal requirements;
(7) identify any regulatory or statutory barriers to statewide
implementation of cost–based, rate–setting methodologies; and
(8) propose options for phased statewide implementation of cost–based,
rate–setting methodologies when fiscal conditions allow.
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WES MOORE, Governor Ch. 218
(h) (1) On or before June 1, 2027, the Workgroup shall submit an interim
report to the Governor and, in accordance with § 2–1257 of the State Government Article,
the General Assembly.
(2) On or before December 1, 2027, the Workgroup shall submit a final
report to the Governor and, in accordance with § 2–1257 of the State Government Article,
the General Assembly that includes:
(i) recommended rate–setting methodologies;
(ii) assumption and cost–model components;
(iii) options for phased implementation;
(iv) estimated fiscal considerations; and
(v) any recommended statutory or regulatory changes.
(i) This section does not:
(1) require an immediate rate increase;
(2) mandate an appropriation; or
(3) create a fiscal obligation in the absence of subsequent legislative or
budgetary action.
7.5–211.
(A) THERE IS A WORKGROUP ON CERTIFIED COMMUNITY BEHAVIORAL
HEALTH CLINIC IMPLEMENTATION AND RATE METHODOLOGY IN THE
ADMINISTRATION.
(B) THE WORKGROUP CONSISTS OF THE FOLLOWING MEMBERS:
(1) TWO MEMBERS OF THE SENATE OF MARYLAND, APPOINTED BY
THE PRESIDENT OF THE SENATE;
(2) TWO MEMBERS OF THE HOUSE OF DELEGATES, APPOINTED BY
THE SPEAKER OF THE HOUSE;
(3) THE DEPUTY SECRETARY OF BEHAVIORAL HEALTH, OR THE
DEPUTY SECRETARY’S DESIGNEE; AND
(4) THE FOLLOWING MEMBERS, APPOINTED BY THE SECRETARY:
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Ch. 218 2026 LAWS OF MARYLAND
(I) ONE REPRESENTATIVE OF THE MARYLAND MEDICAID
ADMINISTRATION;
(II) THREE REPRESENTATIVES OF COMMUNITY BEHAVIORAL
HEALTH PROVIDERS, INCLUDING AT LEAST ONE PROVIDER OPERATING A CERTIFIED
COMMUNITY BEHAVIORAL HEALTH CLINIC THROUGH A FEDERAL GRANT;
(III) ONE REPRESENTATIVE OF A STATEWIDE HOSPITAL
ASSOCIATION;
(IV) ONE REPRESENTATIVE OF A SPECIALTY PSYCHIATRIC
HOSPITAL;
(V) ONE REPRESENTATIVE OF A CONSUMER OR PEER–LED
BEHAVIORAL HEALTH ADVOCACY ORGANIZATION; AND
(VI) ANY ADDITIONAL MEMBERS AS DETERMINED NECESSARY
BY THE COCHAIRS IN CONSULTATION WITH THE WORKGROUP.
(C) THE PRESIDENT OF THE SENATE AND THE SPEAKER OF THE HOUSE
JOINTLY SHALL DESIGNATE ONE LEGISLATIVE MEMBER AND ONE PROVIDER
MEMBER TO SERVE AS COCHAIRS OF THE WORKGROUP.
(D) THE COMMUNITY BEHAVIORAL HEALTH ASSOCIATION OF MARYLAND,
IN COLLABORATION WITH THE DEPARTMENT, MAY PROVIDE STAFF FOR THE
WORKGROUP.
(E) A MEMBER OF THE WORKGROUP:
(1) MAY NOT RECEIVE COMPENSATION AS A MEMBER OF THE
WORKGROUP; BUT
(2) IS ENTITLED TO REIMBURSEMENT FOR EXPENSES UNDER THE
STANDARD STATE TRAVEL REGULATIONS, AS PROVIDED IN THE STATE BUDGET.
(F) THE WORKGROUP SHALL:
(1) REVIEW THE COST OF OPERATING CERTIFIED COMMUNITY
BEHAVIORAL HEALTH CLINICS IN THE STATE, INCLUDING STAFF,
INFRASTRUCTURE, AND COMPLIANCE REQUIREMENTS;
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WES MOORE, Governor Ch. 218
(2) EVALUATE RATE METHODOLOGIES USED IN OTHER STATES FOR
CERTIFIED COMMUNITY BEHAVIORAL HEALTH CLINICS AND RECOMMEND AN
APPROPRIATE PROSPECTIVE PAYMENT SYSTEM OR ALTERNATIVE RATE
METHODOLOGY FOR THE STATE;
(3) ASSESS THE FINANCIAL AND CLINICAL OUTCOMES OF THE
STATE’S EXISTING CERTIFIED COMMUNITY BEHAVIORAL HEALTH CLINIC
GRANTEES, INCLUDING DATA ON UTILIZATION, QUALITY MEASURES, AND COST
OFFSETS;
(4) RECOMMEND STRATEGIES TO INTEGRATE CERTIFIED
COMMUNITY BEHAVIORAL HEALTH CLINICS INTO THE STATE’S BEHAVIORAL
HEALTH AND MARYLAND MEDICAL ASSISTANCE PROGRAM FINANCING SYSTEM,
INCLUDING ALIGNMENT WITH THE ACHIEVING HEALTHCARE EFFICIENCY
THROUGH ACCOUNTABLE DESIGN (AHEAD) MODEL AND OTHER FEDERAL
INITIATIVES;
(5) IDENTIFY ANY REGULATORY OR STATUTORY BARRIERS TO
STATEWIDE IMPLEMENTATION OF CERTIFIED COMMUNITY BEHAVIORAL HEALTH
CLINICS, INCLUDING LICENSURE, REPORTING, AND DATA–SHARING
REQUIREMENTS; AND
(6) PROPOSE A TIMELINE FOR STATEWIDE IMPLEMENTATION AND
SUSTAINABILITY OF CERTIFIED COMMUNITY BEHAVIORAL HEALTH CLINICS.
(G) ON OR BEFORE DECEMBER 1, 2027, THE WORKGROUP SHALL REPORT
ITS FINDINGS AND RECOMMENDATIONS TO THE GOVERNOR AND, IN ACCORDANCE
WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, THE GENERAL ASSEMBLY.
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read
as follows:
Article – Health – General
15–160.
(A) THE DEPARTMENT SHALL CONDUCT A COST–DRIVEN RATE STUDY OF
OUTPATIENT MENTAL HEALTH CENTERS IN THE STATE TO DETERMINE:
(1) THE ACTUAL COST OF PROVIDING OUTPATIENT MENTAL HEALTH
CENTER SERVICES, INCLUDING PERSONNEL, OVERHEAD, AND COMPLIANCE
REQUIREMENTS;
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Ch. 218 2026 LAWS OF MARYLAND
(2) THE ADEQUACY OF CURRENT PROGRAM REIMBURSEMENT RATES
RELATIVE TO THE COSTS IDENTIFIED UNDER ITEM (1) OF THIS SUBSECTION; AND
(3) A METHODOLOGY FOR ESTABLISHING SUSTAINABLE,
COST–BASED REIMBURSEMENT RATES THAT ALIGN WITH ACCESS, WORKFORCE
RETENTION, AND PARITY WITH SOMATIC HEALTH CARE.
(B) IN CONDUCTING THE STUDY REQUIRED UNDER SUBSECTION (A) OF THIS
SECTION, THE DEPARTMENT SHALL:
(1) SOLICIT INPUT FROM OUTPATIENT MENTAL HEALTH CENTER
PROVIDERS, COMMUNITY BEHAVIORAL HEALTH ASSOCIATIONS, CONSUMER
ADVOCACY ORGANIZATIONS, AND OTHER RELEVANT STAKEHOLDERS;
(2) REVIEW RATE METHODOLOGIES FROM OTHER STATES AND
FEDERAL DEMONSTRATION PROGRAMS, INCLUDING CERTIFIED COMMUNITY
BEHAVIORAL HEALTH CLINICS;
(3) CONSIDER THE IMPACT OF INADEQUATE REIMBURSEMENT ON
SERVICE ACCESS, PROVIDER SOLVENCY, WORKFORCE RECRUITMENT AND
RETENTION, CONTINUITY OF CARE, AND EMERGENCY ROOM UTILIZATION AND
BOARDING;
(4) CONSIDER SOCIETAL IMPACTS, INCLUDING COSTS, OF
INADEQUATE REIMBURSEMENT ON HOMELESSNESS, CRIMINAL JUSTICE
INVOLVEMENT, AND UNEMPLOYMENT; AND
(5) DEVELOP RECOMMENDATIONS, INCLUDING LEGISLATIVE AND
BUDGETARY RECOMMENDATIONS, FOR A TRANSPARENT, COST–BASED
RATE–SETTING METHODOLOGY FOR OUTPATIENT MENTAL HEALTH CENTER
SERVICES.
(C) (1) THE DEPARTMENT SHALL CONVENE AN OUTPATIENT MENTAL
HEALTH CENTERS RATE REFORM ADVISORY PANEL THAT INCLUDES:
(I) AT LEAST THREE REPRESENTATIVES OF OUTPATIENT
MENTAL HEALTH CENTER PROVIDERS OF VARYING SIZE AND GEOGRAPHY;
(II) ONE INDEPENDENT ACTUARIAL OR HEALTH ECONOMICS
EXPERT; AND
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WES MOORE, Governor Ch. 218
(III) ANY OTHER STAKEHOLDERS IDENTIFIED BY THE
DEPARTMENT.
(2) THE ADVISORY PANEL SHALL REVIEW AND APPROVE THE
RATE–SETTING METHODOLOGY RECOMMENDED BY THE DEPARTMENT UNDER
SUBSECTION (A)(3) OF THIS SECTION.
(D) (1) FOR FISCAL YEAR 2026 AND FISCAL YEAR 2027, THE
DEPARTMENT SHALL INCREASE THE RATE OF REIMBURSEMENT FOR OUTPATIENT
MENTAL HEALTH CENTERS BY AT LEAST 3% BASED ON THE REIMBURSEMENT RATE
IN THE IMMEDIATELY PRECEDING FISCAL YEAR.
(2) (I) THE GOVERNOR’S PROPOSED BUDGET FOR FISCAL YEAR
2027 AND FISCAL YEAR 2028 SHALL INCLUDE RATE ADJUSTMENTS FOR OUTPATIENT
MENTAL HEALTH CENTERS OF AT LEAST 3% BASED ON THE FUNDING PROVIDED IN
THE LEGISLATIVE APPROPRIATION FOR THE IMMEDIATELY PRECEDING FISCAL
YEAR FOR OUTPATIENT MENTAL HEALTH CENTERS.
(II) THE GOVERNOR’S PROPOSED BUDGET FOR FISCAL YEAR
2028 AND EACH FISCAL YEAR THEREAFTER SHALL INCLUDE FUNDING FOR
OUTPATIENT HEALTH CENTERS SUFFICIENT TO IMPLEMENT THE COST–BASED
REIMBURSEMENT METHODOLOGY ADOPTED BY THE DEPARTMENT IN ACCORDANCE
WITH THIS SECTION.
(E) ON OR BEFORE JULY 1, 2027, THE DEPARTMENT SHALL ADOPT
REGULATIONS ESTABLISHING A COST–BASED REIMBURSEMENT METHODOLOGY FOR
OUTPATIENT MENTAL HEALTH CENTER SERVICES THAT INCORPORATES THE
FINDINGS OF THE STUDY REQUIRED UNDER SUBSECTION (A) OF THIS SECTION AND
THE INPUT OF THE OUTPATIENT MENTAL HEALTH CENTERS RATE REFORM
ADVISORY PANEL.
(F) (1) ON OR BEFORE DECEMBER 1 EACH YEAR, BEGINNING IN 2026,
UNTIL THE COST–BASED REIMBURSEMENT METHODOLOGY RECOMMENDED IN
ACCORDANCE WITH THIS SECTION IS FULLY IMPLEMENTED, THE DEPARTMENT
SHALL REPORT ITS FINDINGS AND RECOMMENDATIONS TO THE SENATE FINANCE
COMMITTEE AND THE HOUSE HEALTH AND GOVERNMENT OPERATIONS
COMMITTEE, IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT
ARTICLE.
(2) THE REPORT REQUIRED UNDER PARAGRAPH (1) OF THIS
SUBSECTION SHALL INCLUDE:
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Ch. 218 2026 LAWS OF MARYLAND
(I) A PROGRESS UPDATE ON THE STUDY REQUIRED UNDER
SUBSECTION (A) OF THIS SECTION;
(II) AN IMPLEMENTATION TIMELINE FOR THE
IMPLEMENTATION OF THE REIMBURSEMENT METHODOLOGY REQUIRED BY THIS
SECTION;
(III) THE ESTIMATED FISCAL IMPACT AND FUNDING NEEDS
RELATED TO THE IMPLEMENTATION OF THE REIMBURSEMENT METHODOLOGY; AND
(IV) INTERIM OUTCOMES FOR OUTPATIENT MENTAL HEALTH
SERVICES PROVIDERS RESULTING FROM THE ANNUAL RATE INCREASES REQUIRED
BY THIS SECTION.
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect July
1, 2026. Section 1 2 of this Act shall remain effective for a period of 2 years and, at the end
of June 30, 2028, Section 1 2 of this Act, with no further action required by the General
Assembly, shall be abrogated and of no further force and effect.
Approved by the Governor, April 28, 2026.
– 14 –Every fact on this page links to its source, starting with the official bill record.