Behavioral health providers and advocates are urging Maryland lawmakers to increase reimbursement rates for behavioral health services provided through Medicaid and the state’s Public Behavioral Health System, warning that stagnant state funding could worsen an already ongoing workforce shortage, The Baltimore Sun reported March 6.
At a March 4 hearing, several behavioral health providers and activists asked the House Appropriations Subcommittee on Health and Social Services for a 3% provider rate adjustment, saying current reimbursement levels are insufficient to retain staff and maintain services for patients facing mental health challenges, substance use disorders and housing instability.
The state faces a 34,000-person behavioral health workforce shortage, and low wages have contributed to staffing losses as community-based providers leave for higher-paying jobs in hospitals, schools and government agencies, according to the report.
Maryland will need to recruit more than 30,000 behavioral health professionals by 2028 to meet estimated demand.
The funding request comes as state lawmakers confront a $1.6 billion budget deficit. Gov. Wes Moore’s proposed fiscal 2027 budget would cut $155.8 million from the Maryland Department of Health’s Behavioral Health Administration, a 3.8% reduction, allocating $3.9 billion for behavioral health services.
State health officials said behavioral health remains a priority, pointing to funding for initiatives such as 24-hour mobile crisis teams and crisis stabilization centers planned for Maryland counties. Still, providers warned that without the requested rate increases, community programs may need to reduce capacity amid rising demand for services.
