All Roll Calls
Yes: 176 • No: 3
MarylandSB 00392026 Regular SessionSenateWALLET
Behavioral Health Rate Methodology Modernization - Workgroup Establishment and Study
Sponsored By: Clarence K. Lam (Democratic)
Signed by Governor
Public HealthAdministrative AgenciesAppropriationsBudgets -see also- Capital BudgetsCertificationsClinicsCommittees and CommissionsCounselors and TherapistsDisparityEmergency Medical Services -see also- Ambul; RescSqdEvaluations and ReviewsGeneral Assembly -see also- AELR Cmte; LegislativePolCmteGovernorHealth -see also- COVID19; EnvHlth; MedCon; etc.Health Care CommissionHealth Care Facilities -see also- Clinics; Hospices; etcHealth, Department ofHealth Planning and Cost ReviewHuman Infrastructure -see also- WLELegislative Services, Department ofLicenses -see also- AB Lic; Certifications; DrLic; PermitsMedical AssistanceMental and Behavioral Health -see also- Aut; Cogn; Dev; etc.Prices -see also- Consumer Price IndexPrivacyPublic Benefits -see also- Housing; MedAsst; SupplNutrAsstPRecruitment and HiringReimbursementsReportsRules and RegulationsStandards and Best PracticesStudies -see also- Commitees & Commissions; ReportsSunset
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Bill Overview
Analyzed Economic Effects
6 provisions identified: 6 benefits, 0 costs, 0 mixed.
3% increases for outpatient mental health pay
The Department raises outpatient mental health center payments by at least 3% in FY2026 and at least 3% in FY2027. The Governor’s proposed budgets for FY2027 and FY2028 include at least 3% boosts based on the prior year. Starting FY2028, the budget includes funding to carry out the new cost-based method. Higher provider payments support access and stable staffing for Medicaid patients.
New cost-based pay for behavioral health
Beginning July 21, 2026, the Behavioral Health and Medicaid administrations build and run a new payment system using the independent cost study. They consult providers and people getting services and adopt regulations. By July 1, 2027, the Department sets cost-based payment rules for outpatient mental health centers based on the study and the advisory panel. Providers bill Medicaid under these updated rules.
Outpatient mental health study and panel
Beginning July 21, 2026, the Health Department studies the real costs of outpatient mental health centers and checks if current rates are adequate. The study looks at staff, overhead, compliance, and the impact on access, provider solvency, workforce, continuity of care, ER use, homelessness, criminal justice, and unemployment. The Department creates a cost‑based rate method and budget suggestions. An advisory panel of at least three providers and one independent expert reviews and approves the Department’s method.
Planning for certified community clinics
Starting July 21, 2026, the Administration convenes a workgroup to plan certified community behavioral health clinic implementation and rate methods. The group reviews clinic costs, compares other states, and assesses outcomes. It recommends a statewide timeline and reports by December 1, 2027.
Reports track rates, wages, and progress
Starting December 1, 2026, the Health Department reports each year to two committees on progress, timelines, costs, funding needs, and early results from rate increases until full rollout. The Health Care Commission files an interim report by January 1, 2028 on system status and early payment recommendations. It also files yearly reports on December 1 starting in 2028 that track effects on provider wages and benefits, staff turnover, and hiring.
State study for fair behavioral health pay
The Health Department runs an independent cost study of community behavioral health services and collects provider cost reports; it must finish by June 30, 2028. The Health Care Commission helps with stakeholder input and technical work, and a Behavioral Health Administration liaison shares Medicaid policy and data. The Commission hosts a rate‑methodology workgroup with an interim report due June 1, 2027 and a final report due December 1, 2027. The workgroup uses the federal CCBHC cost study, reviews key cost drivers, plans rebasing in year two and every three years, and follows Medicaid rules.
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Sponsors & Cosponsors
Sponsor
Clarence K. Lam
Democratic • Senate
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
House vote • 4/13/2026
Third Reading Passed
Yes: 134 • No: 3 • Other: 4
Senate vote • 4/8/2026
Third Reading Passed
Yes: 42 • No: 0 • Other: 3
Actions Timeline
Approved by the Governor - Chapter 218
4/28/2026Returned Passed
4/13/2026SenateThird Reading Passed (134-3)
4/13/2026HouseFavorable Adopted Second Reading Passed
4/11/2026HouseFavorable Report by Health
4/11/2026HouseRereferred to Health
4/10/2026HouseReferred Rules and Executive Nominations
4/9/2026HouseThird Reading Passed (42-0)
4/8/2026SenateSecond Reading Passed with Amendments
4/8/2026SenateFavorable with Amendments {273123/1 Adopted
4/8/2026SenateFavorable with Amendments Report by Finance
4/8/2026SenateHearing 3/03 at 1:00 p.m.
2/12/2026SenateHearing canceled
1/28/2026SenateHearing 2/03 at 2:00 p.m.
1/21/2026SenateFirst Reading Finance
1/14/2026SenatePre-filed
11/1/2025Senate
Bill Text
Third Reading
4/8/2026
First Reading
1/14/2026
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