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Providers press MDH to pursue CCBHC demonstration; DLS and MDH disagree on Maryland's projected federal share
Summary
DLS flagged a lower Maryland estimate for federal match under the CCBHC demonstration (about 39%) compared with other states (65—85%). MDH said the difference reflects state-funded services for uninsured residents; providers and advocates urged the department to apply for the federal demonstration and asked for bridge funding while federal grants expire in September.
Department of Legislative Services analysts told the subcommittee that other states in the CCBHC demonstration show federal participation covering roughly 65% to 85% of total CCBHC costs, while Maryland's DLS-estimated federal share in the analysis was substantially lower (about 39%). DLS urged MDH to explain the discrepancy.
MDH responded that its calculation accounts for state-funded services provided to uninsured individuals, which cannot draw federal Medicaid match; MDH also noted the planning grant has received a no-cost extension to Dec. 30, 2026, and that the governor's FY27 budget includes $4.6 million in a dedicated purpose account to establish CCBHCs at two clinics in January 2027.
Providers and advocates pushed back on MDH's lower federal share estimate. Shannon Hall of the Community Behavioral Health Association and other provider witnesses argued the CCBHC cost templates already build uninsured coverage into the model and that Maryland's federal participation should more closely resemble the experience in other states. Providers warned that four Maryland CCBHC grants expire in September and asked MDH for a timely plan to sustain services, including bridge funding if federal expansion awards are not received.
MDH said it is exploring bridge funding options and that SAMHSA expansion grantees can seek no-cost extensions or reapply for expansion funding; the department also noted it plans to establish CCBHC model sites using the FY27 DPA funding contingent on policy choices and grant outcomes.
What happens next: DLS and providers asked MDH for additional detail on the composition of Maryland's CCBHC cost model and on whether administrative and infrastructure costs would be eligible for enhanced federal match under a demonstration application; the committee requested MDH updates including possible bridge funding solutions for expiring grants.
