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DLS flags shortfalls, recommends cuts and reporting changes in Behavioral Health Administration budget
Summary
The Department of Legislative Services presented an analysis of the Behavioral Health Administration budget showing overall growth driven by Medicaid provider reimbursements but recommending several reductions and annual reporting requirements; the Maryland Department of Health responded with clarifications and partial disagreements.
The Department of Legislative Services (DLS) told the Health and Social Services Subcommittee on Appropriations that the fiscal 2026 allowance for the Behavioral Health Administration (BHA) increases overall but contains specific areas DLS recommends reducing or clarifying.
DLS analyst Naomi Kimura said the fiscal 2026 allowance includes roughly $3,400,000,000 for vendor/provider reimbursements, an increase of about $83,000,000 over the current year, and highlighted that provider reimbursements represent the largest share of BHA's budget. DLS noted the fiscal 2026 allowance includes $19,500,000 for a 1% provider rate increase across three reimbursement programs but recommended deleting that increase given the State’s fiscal situation. DLS also recommended several targeted…
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