The bill mandates the Executive Office of Health and Human Services to conduct a comparative analysis of the per diem payment rates for inpatient psychiatric hospitals and substance abuse treatment hospitals under MassHealth. This analysis will compare the rates provided by MassHealth Managed Care Entities (MCEs) to the MassHealth Fee for Service (FFS) rates. The bill specifies that MCEs, excluding Senior Care Options (SCO) and One Care, must adopt the MassHealth FFS rates as a minimum rate floor for psychiatric hospital/unit services and specialty inpatient services.

The report includes detailed tables outlining the per diem rates for various psychiatric and substance abuse treatment services, highlighting the differences between MCE rates and the FFS rates. For instance, the current FFS rate for psychiatric inpatient services is $954.59, while MCE rates vary significantly, with adult psychiatric unit rates ranging from $858.00 to $2,978.00. Additionally, the bill introduces new legal language regarding the FFS rates and the requirement for MCEs to adhere to these rates as a baseline for their payments.