BALTIMORE, Md. — The Maryland Department of Health announced on July 1, 2025, that it will immediately lift the moratorium on new behavioral health provider enrollments in 14 rural and underserved counties. The temporary enrollment pause will continue for 10 other jurisdictions, including Baltimore City and several urban counties, as the state aims to balance access to care with efforts to curb Medicaid fraud.
The decision affects Psychiatric Rehabilitation Programs (PRP), Psychiatric Rehabilitation Programs (Health Home), Level 2.5 Partial Hospital Programs (PHP), and Level 2.1 Intensive Outpatient Treatment Programs (IOP). Providers with licensed physical addresses in Allegany, Calvert, Caroline, Cecil, Charles, Dorchester, Garrett, Kent, Queen Anne’s, St. Mary’s, Somerset, Talbot, Worcester, and Wicomico counties may now submit new enrollment applications to the Maryland Medicaid Program.
“Our goal is to ensure quality care for all Marylanders. This action is important progress in meeting that goal, as it helps us prioritize access to vital services in our rural and underserved communities,” said Deputy Secretary for Behavioral Health Alyssa Lord. “Now, we are able to shift our focus to other jurisdictions in our effort to improve the patient experience while also mitigating Medicaid fraud, waste, and abuse across Maryland.”
The moratorium remains in place for the same provider types in Anne Arundel, Baltimore City, Baltimore County, Carroll, Frederick, Harford, Howard, Montgomery, Prince George’s, and Washington counties. The Department of Health cited the need to maintain oversight to prevent fraudulent activities within the Medicaid system.
The state will continue processing licensure applications for providers seeking to become licensed community behavioral health providers. Additionally, the Department will maintain enrollment processes for existing provider Medicaid revalidations, relocations, mergers, and acquisitions across all jurisdictions. This ensures that current providers can continue operations without interruption while the state evaluates new enrollments in the specified counties.
The decision to lift the moratorium in rural counties follows a review of healthcare access in underserved areas, where behavioral health services are often limited. By allowing new providers to enroll in these regions, the Department aims to address gaps in care for residents who rely on Medicaid for mental health and substance use treatment. The continued pause in urban counties reflects a strategic focus on monitoring densely populated areas with higher risks of fraudulent billing practices.
The Maryland Medicaid Program, which serves over 1.5 million residents, has faced challenges in recent years with oversight of behavioral health providers. The Department of Health has implemented stricter enrollment protocols to ensure compliance with federal and state regulations. Initially introduced to assess provider quality and program integrity, the moratorium has been a key tool in these efforts.
Providers in the affected rural counties must meet all licensing and Medicaid enrollment requirements before submitting applications. The Department has outlined a streamlined process for new enrollments, including verification of physical addresses and compliance with program standards. The Maryland Department of Health’s Medicaid enrollment portal provides details on the application process.
The Department of Health plans to monitor the impact of the lifted moratorium over the next year, with potential adjustments to the policy based on enrollment trends and service outcomes. The state remains committed to expanding access to behavioral health services while safeguarding the integrity of the Medicaid program.