Mid-Atlantic Health Law TOPICS

1. The Maryland Department of Health (MDH) has received approval from the Centers for Medicare and Medicaid Services (CMS) to amend HealthChoice §1115 Demonstration Waiver Amendment to provide targeted Medicaid services for incarcerated individuals who have substance use disorders (SUD) or serious mental illnesses (SMI) up to 90 days before their release, starting July 1, 2025. CMS also approved the statewide expansion of housing and tenancy-based management services through the Assistance in Community Integration Services (ACIS) program. The ACIS program provides housing and tenancy-based case management services to eligible Medicaid participants who are currently experiencing housing instability. The expansion will add 1,240 participant spaces to the program.

2. In December of 2024, the Maryland Health Services Cost Review Commission (HSCRC) increased hospital rates by $50 million in preparation for Maryland’s participation in the AHEAD program model. This annual rate increase, effective January 1, 2025, is intended to support hospital staffing needs and offset pressure on the costs of physician support. The proposed rate increase will occur on a permanent, all-payer basis and this investment in the hospital workforce will bolster access to acute care services across the state.  

Kennedy M. Hagens
410-576-4146 • khagens@gfrlaw.com