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MarylandHB 07722026 Regular SessionHouse

Behavioral Health Rate Methodology Modernization - Workgroup Establishment and Study

Sponsored By: Emily Shetty (Democratic)

Signed by Governor

Health Care Facilities and RegulationPublic HealthAssociations -see also- Cooperative AssociationsClinicsCommittees and CommissionsCounselors and TherapistsGeneral Assembly -see also- AELR Cmte; LegislativePolCmteHealth Care CommissionHealth Care Facilities -see also- Clinics; Hospices; etcHealth, Department ofHealth Planning and Cost ReviewLegislative Services, Department ofMental and Behavioral Health -see also- Aut; Cogn; Dev; etc.Prices -see also- Consumer Price IndexReimbursementsReportsRevenue and Taxes -see also- (specific tax)Standards and Best PracticesStudies -see also- Commitees & Commissions; ReportsSunsetVirtual Environments

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 2 benefits, 1 costs, 1 mixed.

How the workgroup designs cost-based rates

The Workgroup uses the federal CCBHC cost study as its base data. It studies key cost drivers like staffing mix, supervision, telehealth use, and group size. It approves how costs are measured, including excluding programs started after 2020, overhead allocation, and separating Medicaid from non‑Medicaid revenue. It creates cost‑based rate methods with rebasing in demonstration year two and every three years. It must follow federal Medicaid and Upper Payment Limit rules and propose phased rollout plans and fixes for any legal barriers.

Two-year workgroup to set behavioral health rates

The Health Care Commission sets up a Workgroup on July 1, 2026 to design cost-based behavioral health payments. Members include lawmakers, providers, clinicians, consumer advocates, and a health‑economics expert. The group files an interim report by June 1, 2027 and a final report by December 1, 2027. The Workgroup’s authority ends on June 30, 2028.

No automatic rate hikes or funding

The law does not require an immediate rate increase or any appropriation. The state has no fiscal duty under this section until lawmakers approve funding. Providers should not expect automatic payment changes from this law alone.

State study and new behavioral health payments

The Health Department completes an independent, cost‑driven rate study by June 30, 2028 and collects provider cost reports. The Health Care Commission helps with stakeholder input, analysis, and data, and a Behavioral Health Administration liaison keeps the work aligned. The Behavioral Health and Medical Care Programs Administrations build a new payment system using the study and adopt needed regulations after consulting providers and patients. By January 1, 2028, the Commission submits an interim delivery‑system report. On December 1, 2028 and every year after, it reports how rate changes affect wages, benefits, staff tenure, turnover, and hiring—and it may require providers to submit data for these reports.

Sponsors & Cosponsors

Sponsor

  • Emily Shetty

    Democratic • House

Cosponsors

  • Tiffany T. Alston

    Democratic • House

  • Heather Bagnall

    Democratic • House

  • Bonnie Cullison

    Democratic • House

  • Dana Jones

    Democratic • House

  • Mark Edelson

    Democratic • House

  • Catherine M. Forbes

    Democratic • House

  • Pam Lanman Guzzone

    Democratic • House

  • Terri L. Hill

    Democratic • House

  • Aaron M. Kaufman

    Democratic • House

  • Lesley J. Lopez

    Democratic • House

  • Ashanti Martinez

    Democratic • House

  • Aletheia McCaskill

    Democratic • House

  • Samuel I. Rosenberg

    Democratic • House

  • Kim Ross

    Democratic • House

  • Malcolm P. Ruff

    Democratic • House

  • Steve Johnson

    Democratic • House

  • Deni Taveras

    Democratic • House

  • Jennifer White Holland

    Democratic • House

  • Teresa Woorman

    Democratic • House

Roll Call Votes

All Roll Calls

Yes: 275 • No: 20

Senate vote • 4/9/2026

Third Reading Passed

Yes: 42 • No: 0 • Other: 2

House vote • 4/9/2026

Third Reading Passed

Yes: 122 • No: 7 • Other: 7

House vote • 3/21/2026

Third Reading Passed

Yes: 111 • No: 13 • Other: 9

Actions Timeline

  1. Approved by the Governor - Chapter 219

    4/28/2026

  2. Passed Enrolled

    4/9/2026House

  3. Third Reading Passed (122-7)

    4/9/2026House

  4. House Concurs Senate Amendments

    4/9/2026House

  5. Third Reading Passed (42-0)

    4/9/2026Senate

  6. Second Reading Passed with Amendments

    4/8/2026Senate

  7. Favorable with Amendments {803426/1 Adopted

    4/8/2026Senate

  8. Favorable with Amendments Report by Finance

    4/8/2026Senate

  9. Hearing 3/31 at 1:00 p.m.

    3/25/2026Senate

  10. Referred Finance

    3/23/2026Senate

  11. Third Reading Passed (111-13)

    3/21/2026House

  12. Second Reading Passed with Amendments

    3/20/2026House

  13. Favorable with Amendments {243223/1 Adopted

    3/20/2026House

  14. Favorable with Amendments Report by Health

    3/20/2026House

  15. Hearing 2/25 at 1:00 p.m.

    2/9/2026House

  16. First Reading Health

    2/4/2026House

Bill Text

  • Enacted

    4/28/2026

    PDF

  • Enrolled

    4/9/2026

    PDF

  • Third Reading

    3/20/2026

    PDF

  • First Reading

    2/4/2026

    PDF

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