Representatives of behavioral-health hospitals and members of the legislature asked the Joint Committee on Health Care Financing to advance H1407, a bill intended to enshrine MassHealth's administrative policy requiring rate parity for inpatient behavioral-health services between managed-care organizations and MassHealth fee-for-service into statute.

Representative Jeff Scanlon introduced the bill and told the committee that parity is currently enforced through administrative guidance but could be reversed by future administrations or affected by federal Medicaid funding pressures. "This bill would strengthen and protect this current administrative policy by putting it into statute," Scanlon said.

David Matioto, executive director of the Massachusetts Association of Behavioral Health Systems, described a prior episode when MassHealth increased fee-for-service rates but some behavioral health managed-care arrangements paid substantially lower per-diem rates. He said MassHealth had later directed contractors to pay at least the MassHealth fee-for-service rate, but the statutory change is necessary to make the parity durable. "This bill will not increase cost; it would be a good policy, to put in statute," Matioto testified.

Why it matters: Witnesses argued inpatient behavioral-health capacity is fragile and that rate parity supports provider sustainability and access to inpatient and residential services, particularly in rural and underserved areas.

Next steps: Sponsors asked the committee to report the bill favorably so the parity becomes statute rather than administrative policy. The committee did not take action during the hearing.

Ending: Backers said statutory parity would provide certainty to providers and protect access to inpatient behavioral-health services for MassHealth patients even under changing federal or administrative conditions.