BALTIMORE – The Maryland Department of Health will extend a temporary pause on enrolling certain new Medicaid behavioral health providers for an additional six months, from Jan. 1, 2026, through June 30, 2026.
The moratorium applies to four provider types seeking initial enrollment as Medicaid participants: Psychiatric Rehabilitation Programs (PRP), PRP Health Homes, Level 2.5 Partial Hospitalization Programs (PHP), and Level 2.1 Intensive Outpatient Programs (IOP).
The restriction covers 10 jurisdictions: Anne Arundel, Baltimore City, Baltimore, Carroll, Frederick, Harford, Howard, Montgomery, Prince George’s and Washington counties.
MDH Deputy Secretary for Behavioral Health Alyssa Lord said the extension supports ongoing efforts to evaluate the provider network, strengthen quality oversight and reduce fraud, waste and abuse in the Public Behavioral Health System.
“This additional extension is key to our comprehensive strategy to evaluate the provider landscape and deliver the best treatment and support to Marylanders,” Lord said. “Our goal remains to ensure compliance with regulations, assess the quality of care and proactively identify and prevent fraud, waste and abuse.”
The department first imposed the moratorium in July 2024 and extended it once before the latest action. Officials describe the pause as part of a broader initiative launched in 2023 to improve program integrity after identifying billing irregularities and rapid growth in some provider categories.
The moratorium does not affect:
- Currently enrolled PRP, PHP and IOP providers, who may continue delivering and billing for services
- Individual licensed practitioners such as psychiatrists, psychologists, licensed clinical social workers and licensed professional counselors
- Behavioral health clinics operating within regulated hospital settings
- Services delivered at Federally Qualified Health Centers
Maryland Medicaid will continue normal processing for provider revalidations, practice relocations, ownership changes, mergers and acquisitions. The state will also maintain its separate licensure process for community-based behavioral health programs.
State data show Maryland’s Public Behavioral Health System served more than 900,000 Medicaid and uninsured individuals in fiscal year 2024. Psychiatric rehabilitation programs alone grew from fewer than 150 licensed locations in 2019 to more than 350 by mid-2024, prompting heightened scrutiny of enrollment patterns and service delivery.
MDH officials have conducted on-site audits, enhanced claims review protocols and collaborated with the Maryland Office of the Attorney General’s Medicaid Fraud Control Unit during the moratorium period.
The department plans to use the extended six-month window to complete a comprehensive assessment of provider capacity, geographic distribution and service quality in the affected counties. Findings will help determine whether the moratorium should lift on July 1, 2026, or require further adjustment.
Providers and stakeholders may review full details in Maryland Medicaid Transmittal BH-24-01, available on the department’s website at health.maryland.gov.