1 of 1 SENATE DOCKET, NO. 981 FILED ON: 1/15/2025 SENATE . . . . . . . . . . . . . . No. 874 The Commonwealth of Massachusetts _________________ PRESENTED BY: John F. Keenan _________________ To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General Court assembled: The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill: An Act strengthening mental health centers. _______________ PETITION OF: NAME:DISTRICT/ADDRESS :John F. KeenanNorfolk and PlymouthJames B. EldridgeMiddlesex and Worcester2/9/2025James K. Hawkins2nd Bristol2/11/2025David Paul Linsky5th Middlesex2/20/2025Michael O. MooreSecond Worcester2/20/2025Manny Cruz7th Essex2/26/2025Michael D. BradySecond Plymouth and Norfolk2/27/2025Dylan A. FernandesPlymouth and Barnstable3/10/2025 1 of 4 SENATE DOCKET, NO. 981 FILED ON: 1/15/2025 SENATE . . . . . . . . . . . . . . No. 874 By Mr. Keenan, a petition (accompanied by bill, Senate, No. 874) of John F. Keenan, James B. Eldridge, James K. Hawkins, David Paul Linsky and other members of the General Court for legislation to strengthen mental health centers. Health Care Financing. The Commonwealth of Massachusetts _______________ In the One Hundred and Ninety-Fourth General Court (2025-2026) _______________ An Act strengthening mental health centers. Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows: 1 SECTION 1. Chapter 118E of the General Laws, as appearing in the 2022 official 2edition, is hereby amended by inserting after 13D½ the following section:- 3 Section 13D¾. 4 (a) For the purposes of this section, the following words shall have the following 5meanings: 6 “Behavioral health clinic”, a clinic licensed by the department of public health pursuant 7to section 3 and sections 51 through 56 of chapter 111 and regulated pursuant to 130 CMR 8429.000. 9 “Behavioral health services”, evaluation, diagnosis, treatment, care coordination, 10management or peer support of patients with mental health, developmental or substance use 11disorder. 2 of 4 12 “Independent practitioner”, an individual who is licensed by the board to practice 13independent clinical social work and who meets the qualifications set forth in section 131 of 14chapter 112 for an independent clinical social worker and is regulated pursuant to 130 15CMR462.000. 16 “Minimum payment rates”, rates of payment for services below which managed care 17entities may not enter into provider agreements. 18 (b) The division shall increase minimum payment rates for behavioral health services by 195% per procedure code for rates of payment effective as of January 1, 2027. 20 (c) Pursuant to sections 13C and 13D, and notwithstanding any general of special law to 21the contrary, the division shall ensure that each rate of payment or component payment in a 22bundled rate for behavioral health services delivered in behavioral health clinics are no less than 2320% above comparable behavioral health services delivered by independent practitioners. 24 (d) The division shall review behavioral health service rates biennially. This review shall 25include, but not be limited to, the following: (i) adoption of an inflationary adjustment factor no 26less than the total Medicare Economic Index percentage for the past two calendar years; (ii) 27where possible, comparison of the wage estimate for each classification of staff position to the 2875th percentile wage estate for that position as determined by the most current United States 29Bureau of Labor Statistics for the commonwealth; and (iii) consideration of the reasonable cost 30to providers of any existing or new governmental mandate that has been enacted, promulgated or 31imposed by any governmental unit or federal governmental authority. 32 SECTION 2. Said chapter 118E is hereby amended by inserting after section 13L the 33following new section:- 3 of 4 34 Section 13M. 35 (a) For the purposes of this section, the following words shall have the following 36meanings: 37 “Behavioral health clinic”, a clinic licensed by the department of public health pursuant 38to section 3 and sections 51 through 56 of chapter 111, and that is regulated pursuant to title 130 39CMR 429.000. 40 “Behavioral health services”, evaluation, diagnosis, treatment, care coordination, 41management or peer support of patients with mental health, developmental or substance use 42disorder. 43 “Independent practitioner”, an individual who is licensed by the board to practice 44independent clinical social work and who meets the qualifications set forth in section 131 of 45chapter 112 and who is regulated pursuant to 130 CMR462.000. 46 “Managed care entity”, all contracted health insurers, health plans, health maintenance 47organizations, behavioral health management firms and third-party administrators under contract 48to a Medicaid managed care organization or primary care clinician plan, and accountable care 49organizations. 50 “Minimum payment rates”, rates of payment for services below which managed care 51entities may not enter into provider agreements. 52 (b) Notwithstanding applicable state and federal laws, the division shall direct its 53managed care entities to increase minimum payment rates for behavioral health services by 5% 54per procedure code for rates of payment effective as of January 1, 2027. 4 of 4 55 (c) The division shall direct managed care entities to ensure that each rate of payment or 56component payment in a bundled rate for behavioral health services delivered in behavioral 57health clinics is no less than 20% above comparable behavioral health services delivered by 58independent practitioners. 59 (d) The division shall review rates of payment by managed care entities for behavioral 60health services biennially. This review shall include, but not be limited to, the following: (i) 61adoption of an inflationary adjustment factor no less than the total Medicare Economic Index 62percentage for the past two calendar years; (ii) where possible, comparison of the wage estimate 63for each classification of staff position to the 75th percentile wage estate for that position as 64determined by the most current United States Bureau of Labor Statistics for the commonwealth; 65and (iii) consideration of the reasonable cost to providers of any existing or new governmental 66mandate that has been enacted, promulgated or imposed by any governmental unit or federal 67governmental authority.