MDH announces Medicaid rate increases for home and community-based services


Nicole Pasia


Increased Medicaid rates for Maryland’s home and community-based services (HCBS) are going into effect, the Department of Health (MDH) announced this week.

HCBS programs provide patient-centered care to individuals with physical, intellectual, and developmental diabetes and behavioral health needs.


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The HCBS increases are as follows:

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

They stem from the state’s budget bill for fiscal year 2022, which passed during the last legislative session. HB588 directs Medicaid to spend at least 75% of federal funds from the American Rescue Plan Act (ARPA) on one-time provider rate increases. 

ARPA funds come in the form of a 10% increased federal medical assistance percentage (FMAP), which is effective from April 1, 2021 to March 31, 2022. Medicaid will have three years to spend the funds accumulated by the increased FMAP. 

The rate increases impact over a dozen HCBS waivers in Maryland, detailed in the state’s HCBS spending plan that was submitted to the Centers for Medicare and Medicaid Services on July 13, 2021. MDH collaborated with the Maryland Developmental Disabilities Administration (DDA) and the Maryland Behavioral Health Administration (BHA) to draft the plan.

In Maryland, programs like the Program of AllInclusive Care for the Elderly (PACE), Waiver for Children with Autism Spectrum Disorder, and Model Waiver for Medically Fragile Children are all eligible to benefit from the rate increases. 

According to the spending plan, MDH initially planned on increasing HCBS rates by 6%, as well as providing increases for behavioral health services. These would total $99.8 million additional state funding for HCBS services ($234.8 million in total funds).

Of the current rate increases, MDH Secretary Dennis R. Schrader said: 

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