Senate panel repeals behavioral-health provider rules after state shifts services to contractor; providers and advocates weigh in

The Senate Health and Welfare Committee on Thursday approved a series of administrative-rule dockets that remove Department of Health and Welfare language describing the department as a direct provider of substance use disorder (SUD), adult mental health and children's mental health services, reflecting a contract model that began July 1, 2024.

The changes repeal or strike provisions that describe the department as a direct service provider and align the rules with the contract the state executed with Magellan, which now manages behavioral-health service delivery. Jared Larson, Legislative and Regulatory Affairs Chief for the Department of Health and Welfare, told the committee the rule changes "speak to the department as a direct service provider, which we no longer are under that contract." He asked the committee to approve the dockets accordingly.

Why it matters: The department retains statutory responsibility to ensure behavioral-health services are available, Larson said, but the contract with Magellan shifts day-to-day delivery to a vendor while the department oversees performance. Committee members and witnesses framed the rule changes as…