Bill
H 1407
Bill H 1407 ensures behavioral health inpatient providers receive equal reimbursement rates from insurers, improving care access and financial stability for these services.
Bill H 1407 aims to establish rate parity for behavioral health inpatient providers under the MassHealth program in Massachusetts. The primary objective is to ensure that all contracted health insurers and related entities reimburse inpatient behavioral health providers at a rate that is not less than the established MassHealth fee-for-service per diem rate. This legislation seeks to address disparities in reimbursement rates that may affect the availability and quality of behavioral health services.
Rate Parity Requirement: The bill mandates that all health insurers, health plans, health maintenance organizations, behavioral health management firms, and third-party administrators contracted with MassHealth must reimburse network inpatient behavioral health providers at least at the MassHealth fee-for-service per diem rate.
Scope of Providers: The legislation specifically targets inpatient behavioral health providers, ensuring they receive equitable compensation for their services.
Behavioral Health Providers: Inpatient facilities providing behavioral health services will benefit from guaranteed reimbursement rates, which may enhance their financial stability and ability to deliver care.
MassHealth Members: Patients receiving behavioral health services through MassHealth may experience improved access to care as providers are incentivized to maintain or expand their services due to better reimbursement rates.
Health Insurers and Administrators: Entities that contract with MassHealth will need to adjust their reimbursement policies to comply with the new requirements set forth by the bill.
Introduced: The bill was introduced on February 27, 2025, by Representative Adam J. Scanlon and co-sponsored by Vanna Howard.
Committee Referral: Upon introduction, the bill was referred to the Health Care Financing Committee.
Hearing Scheduled: A public hearing was scheduled for July 15, 2025, from 10:00 AM to 4:00 PM in Gardner Auditorium, allowing stakeholders to provide input on the proposed legislation.
Reporting Date Extension: The reporting date for the bill has been extended to March 18, 2026, indicating ongoing discussions and evaluations regarding its provisions.
Bill H 1407 represents a significant step towards ensuring equitable reimbursement for behavioral health services under the MassHealth program. By establishing a requirement for rate parity, the bill aims to enhance the sustainability of behavioral health providers and improve access to necessary services for individuals in need of care. The extended reporting date suggests that further deliberations will continue as stakeholders assess the implications of this legislation.
Compiled from official sources — confirm details with the bill’s official record.
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