Communication from the Executive Office of Health and Human Services (pursuant to item 4000-0500 of Section 2 of Chapter 28 of the Acts of 2023) submitting its report comparing the rate differential for inpatient psychiatric hospitals and substance abuse treatment hospital per diem payments

This document is a formal report from the Massachusetts Executive Office of Health and Human Services that compares payment rates for inpatient psychiatric and substance abuse treatment services. It analyzes the difference between fixed rates set by the state's MassHealth Fee for Service program and the varying rates used by private managed care organizations and other insurance plans. The report includes detailed tables showing that while the state sets a minimum floor for some psychiatric rates, managed care organizations often pay significantly higher amounts, particularly for adult psychiatric care and specialized services for children and eating disorders. Additionally, the document notes that substance abuse treatment hospital rates vary widely among different payors, with some plans paying less than the state's standard rate. This submission fulfills a legislative requirement to provide transparency on how different healthcare providers are compensated for these specific mental health and addiction services.