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5/27/2026
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Senate OKs bill setting rate floor for behavioral health
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STATE HOUSE – The Senate today approved legislation sponsored by Sen. Jacob E. Bissaillon to prohibit private insurers from reimbursing behavioral health care services at a rate lower than the Medicaid rate.
In Rhode Island, insurers often set reimbursement rates for behavioral health services, including treatments for substance use, that are lower than what Medicaid would pay for the same services. Those rates are also lower than the rates they pay for the same services in surrounding states.
“Particularly at a time when our state is still affected by the opioids and overdose crises, we need a high-quality behavioral health care system, and we can’t expect to have that when insurers aren’t paying providers a reasonable rate. The people who work in this field are extremely dedicated to the important work they do, but they very easily can drive a few miles to work in Massachusetts or Connecticut and make a wage that will better support their families,” said Senator Bissaillon (D-Dist. 1, Providence). “The agencies that provide these services struggle to recruit and keep staff, to keep their doors open or to expand to provide enough services to meet the demand because of these low rates. This bill would ensure that our state can keep highly qualified providers and that these important services remain available to all those who need them.”
Medicaid reimbursement rates in Rhode Island are set by the Executive Office of Health and Human Services. The legislation establishes that that they become the “rate floor,” so that private insurers could set their behavioral health rates higher, but not lower.
The legislation (2026-S 2108aa) is supported by a number of health agencies and organizations, including the Opiate Treatment Association of Rhode Island, Codac Healthcare, Newport Mental Health and the Rhode Island Coalition for Children and Families.
The bill now goes to the House, where Rep. Raymond A. Hull (D-Dist. 6, Providence, North Providence) is sponsoring a companion bill (2026-H 7346).
For more information, contact:
Meredyth R. Whitty, Publicist
State House Room 20
Providence, RI 02903
(401) 222-1923
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