Maryland Department of Health expands access to school-based mental health services for children and youth
Maryland 2025 — The Maryland Department of Health has made it easier for families on Medicaid to access mental health services in schools for their children. The expansion allows Local Education Agencies to offer certain behavioral health services to all students enrolled in Medicaid. Previously, Medicaid payment for these services was limited to Medicaid-enrolled students who have an approved Individualized Education Program (IEP) or Individualized Family Service Plan (IFSP).
Maryland Medicaid covers over 650,000 children in the state of Maryland, almost 1 in 2 children in the state. The updated policy now allows all Maryland public K-12 schools to bill Medicaid for children enrolled in the program that receive diagnostic evaluations, individual therapy, family therapy, and group therapy. These services are provided by licensed school psychologists and school social workers. Licensed school psychologists are a new Medicaid provider type under this expansion.
“This expansion is a step forward in addressing the mental health needs of Maryland’s students,” said Maryland Secretary of Health Dr. Laura Herrera Scott. “We’re breaking down barriers to mental health care and making sure that every student has access to the support they need to succeed in and out of the classroom.”
Currently, Local Education Agencies are reimbursed for mental health services only when provided to students enrolled in Medicaid with an approved IEP or IFSP. Under the new plan, all students enrolled in Medicaid will have access to these vital services. School psychologists who are licensed by the Maryland State Department of Education, and Clinical Social Workers who are licensed by the Maryland Department of Health will deliver these services.
The initiative is bolstered by a three-year, $2.5 million cooperative agreement from the Centers for Medicare & Medicaid Services (CMS) awarded to Maryland and 17 other states to expand access to behavioral health services in schools. The Maryland Department of Health is collaborating with the Maryland State Department of Education and a statewide coalition of representatives from various state health agencies, the state department of education, and local jurisdictions and the Maryland Community Health Resources Commission, to roll out these expanded services.
“When we expand access to mental health services, we strengthen the depth of support available to students,” said State Superintendent of Schools Dr. Carey M. Wright. “Social-emotional wellness is directly tied to academic success. We appreciate our partnership with the Maryland Department of Health on this important initiative."
The Maryland Department of Health and Maryland State Department of Education are together committed to fostering the mental health and academic success of Maryland’s students. For more about Medicaid school-based services, please visit the CMS Medicaid & School Based Services website.
