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Maryland Department of Health announces new Medicaid rate increases

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Posted at 11:56 AM, Nov 02, 2021
and last updated 2021-11-02 11:56:53-04

MARYLAND — On Tuesday, the Maryland Department of Health (MDH) announced Medicaid rate increases for home and community-based service (HCBS) providers.

Increased Medicaid rates will enable HCBS providers to strengthen service delivery.

“These rate increases will prove instrumental in further serving our Medicaid recipient population,” said MDH Secretary Dennis R. Schrader. “The new rates are the result of working closely with Medicaid providers and stakeholders, and they will help Marylanders who need assistance the most.”

The American Rescue Plan Act (ARPA), which became law on March 11, supports Medicaid HCBS providers during the COVID-19 pandemic by providing a 10 percent enhanced federal medical assistance percentage (eFMAP).

The law requires states to use these funds to enhance, expand or strengthen HCBS.

During the most recent legislative session, the Maryland General Assembly passed HB 588, the state’s FY2022 budget bill, which directs Medicaid to spend at least 75 percent of federal ARPA reinvestment dollars for a one-time-only provider rate increase.

As such, Maryland is implementing the following rate increases:

  • A 5.5 percent rate increase for most HCBS developmental disability providers
  • A 5.4 percent rate increase for most HCBS behavioral health and Applied Behavior Analysis (ABA) providers
  • A 5.2 percent rate increase for community-based long-term services and support providers

The provider rate increases target providers and services that are eligible for the enhanced federal match. Additionally, the provider increases vary slightly based on the amount of reinvestment monies generated within the long-term care, behavioral-health and developmental-disabilities programs.

For more detailed information, including the methodology used to determine the estimated fiscal impact and rate increases, please see MDH’s initial HCBS Spending Plan.