A new Medicaid program adopted by the Maryland Department of Health could help local detentions centers get the cost of care covered for some returning citizens in local custody.
Maryland is giving local detention centers a new opportunity to recover some of the costs associated with helping incarcerated individuals transition back into the community through the state’s Medicaid Reentry Program for Children and Young Adults. The program allows eligible local jails to bill Medicaid for justice-involved case management provided during the 30 days before release, with reimbursement set at $561.05 per eligible participant per 30-day period.
Eligible individuals generally must be younger than 21, or ages 18 through 26 and eligible for Medicaid as a former foster youth, have been found guilty of a criminal offense, and be expected to leave the jail within 30 days. The program also covers certain age-appropriate screenings, diagnostic services, behavioral health screenings, and recommended vaccines.
A prior Conduit Street article discussed this issue and the need for an 1115 Waiver that the Maryland Department of Health (MDH) has since applied for and received. Unfortunately for local governments, in the process of establishing the waiver program at MDH, the program was initially going to only include state run facilities. Since the adoption of the program, resources have been expanded to local detention centers but only for a limited number of detainees to include juveniles and young adults. These individuals are a very small portion of the local detention center populations but coverage of those groups is a welcome resource as the state works towards rolling out coverage of older adults in local custody.
The opportunity comes as Medicaid’s role in correctional health care is changing. Beginning January 1, 2026, federal law requires states to suspend rather than terminate Medicaid enrollment when an individual becomes incarcerated, making it easier to restore coverage upon release. Maryland’s jail manual provides a roadmap for local facilities to establish the data systems, staffing, enrollment procedures and privacy protections necessary to participate. While the reimbursement does not cover the full cost of an individual’s incarceration or general medical care, it gives county jails a potential new Medicaid revenue source for qualifying reentry work—while helping connect people to health and behavioral health services before they return to their communities.
