BALTIMORE — The Maryland Department of Health announced proposed regulations on May 16, 2025, to strengthen oversight of community-based behavioral health programs, aiming to reduce fraud, waste, and abuse. The public comment period for these changes, which clarify standards and enhance enforcement, ends June 16, 2025. The proposals address long-standing issues in the state’s behavioral health system, serving over 1,000 providers.
The regulations, part of a three-phase reform plan, update COMAR 10.63 guidelines. Phase 1, finalized April 14, 2025, introduced civil money penalties for serious violations. Phase 2, announced today, revises compliance, staffing, licensing, and enforcement rules. Phase 3, planned for summer 2025, will detail requirements for specific program types. “This action marks a significant step in combating fraud and ensuring quality health care for all Marylanders,” said Maryland Health Secretary Dr. Meena Seshamani. “As a regulator and state behavioral health authority, we take our responsibility to provide behavioral health care seriously. Maryland individuals and families deserve high-quality health care services they can trust.”
The proposed changes include four key chapters. Chapter 1 (10.63.01) sets clear compliance and reporting standards to ensure consistent provider accountability. Chapter 2 (10.63.02) establishes staffing requirements to improve service delivery oversight. Chapter 6 (10.63.06) streamlines the licensing process with clear application procedures. Chapter 9 (10.63.09) strengthens corrective actions and sanctions for non-compliance, increasing transparency in disciplinary measures.
These proposals incorporate feedback from over 300 stakeholders and 900 comments collected during regional meetings with local health authorities, nonprofits, providers, and service recipients. The regulations build on recent department actions, including pausing new provider types due to identified Medicaid fraud, transitioning to a new administrative services organization for quality assurance, reviewing service over-utilization, and increasing referrals to the Office of the Inspector General and the Attorney General’s Medicaid Fraud and Vulnerable Victims Unit.
Public comments can be submitted until June 16, 2025, to Jordan Fisher Blotter, Director of the Office of Regulation and Policy Coordination, at 201 West Preston Street, Room 534, Baltimore, Maryland 21201, by calling 410-767-0938, or emailing mdh.regs@maryland.gov. The department’s website provides full details of the proposed regulations.
The initiative reflects Maryland’s broader efforts to enhance behavioral health services amid rising demand. By clarifying standards and strengthening enforcement, the department aims to protect patients and ensure resources are used effectively. The pause on new provider types followed reports of Medicaid misuse, prompting a review of service utilization to curb inappropriate billing. The new administrative services organization will monitor compliance and evaluate provider performance continuously.
Stakeholder engagement has been central to shaping these reforms. Meetings across Maryland gathered diverse perspectives, ensuring the regulations address real-world challenges faced by providers and patients. The proposed staffing requirements aim to ensure programs are adequately resourced, while the streamlined licensing process seeks to reduce administrative burdens without compromising oversight.
As the public comment period begins, the department encourages Marylanders to review the proposals and provide input. The feedback will inform final revisions before the regulations take effect. With Phase 3 on the horizon, the state is poised to further refine its behavioral health framework, balancing accessibility with accountability to deliver trusted care to communities statewide.
