Maryland Department of Health Extends Moratorium on New Enrollments of Select Provider Types

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A pause on new enrollments into the Maryland Medicaid Program of several select provider types has been extended to July 2025, according to the Maryland Department of Health. Included are the following program types, which are licensed under the Maryland Code of Maryland Regulations:

 

  1. Psychiatric Rehabilitation Programs (PRP)
  2. Psychiatric Rehabilitation Programs, Health Home
  3. Level 2.5 Partial Hospital Programs (PHP), and
  4. Level 2.1 Intensive Outpatient Treatment Programs (IOP)
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This pause in accepting applications for these provider types was in response to their rapid growth since moving to an accreditation-only model for provider licensing. This effort is part of a multi-step approach allowing the Department to assess and evaluate the provider landscape and identify and mitigate potential fraud, waste, and abuse. 

Additional Information from the Maryland Department of Health:

“Quality behavioral health care for Marylanders continues to be a top priority of the Department,” said Deputy Secretary for Behavioral Health Alyssa Lord. “This pause is one essential part of a larger plan to ensure much-needed oversight and compliance of new provider applications and protect Marylanders in need of behavioral health services.” 

Centers for Medicare and Medicaid Services granted an extension to the pause after reviewing evidence submitted by the Department. The temporary suspension effective, July 1, 2024, is in response to the rapid growth of these provider types since moving to an accreditation-only model for provider licensing. 

The Department remains committed to protecting Marylanders seeking services with state-licensed providers. Other actions include the following:

  • Completing a comprehensive revision of Maryland’s regulations, including COMAR 10.63 and 10.21 Behavioral Health regulations and COMAR 10.09 Medicaid regulations.

  • Transitioning to a new Behavioral Health Administrative Services Organization (BHASO) to help bring the public behavioral health system back into compliance with federal regulations and provide continuous quality assurance and quality improvement evaluations.

  • Continue analysis of under-used service types to identify potential amendments to Maryland’s state plan for services types that are severely underutilized.

  • Evaluating the potential for introducing new lower cost service types, such as Substance Use Disorder Case Management Services, offering case management services for individuals with a primary substance use disorder.

The moratorium will not impact access to behavioral health services provided by individual practitioners (e.g., licensed social workers, licensed professional counselors, psychologists, psychiatrists), behavioral health services provider clinics operated in regulated hospital spaces, and behavioral health service providers at Federally Qualified Health Centers. 

The Department will maintain the licensure and enrollment process for existing providers experiencing license renewals; licenses required for programs identified and funded by state or county grant funding; relocations; mergers and acquisitions; and extensions required due to accreditation delays.


 

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