Disability advocates and residents urged the Maryland Senate Finance Committee on Tuesday to advance legislation designed to prevent people with developmental disabilities from losing Medicaid coverage due to administrative errors and delays.

Senate Bill 742, the Maryland Protecting People With Disabilities Act, would codify in state law federal protections drawn from the landmark U.S. Supreme Court’s 1999 decision in Olmstead v. L.C. The court case essentially makes it illegal to discriminate against people with disabilities, making it so that states have to deliver services and care in community settings rather than institutionalizing or locking individuals with disabilities.

“We have to send the message, and we have to constantly be sending the message, of how important it is to follow the [Americans with Disabilities Act], to follow the component parts, in particular, as it relates to medical services and Medicaid,” co-bill sponsor state Sen. Guy Guzzone, who represents Howard County, said in his testimony.

The measure, sponsored by Guzzone and Montgomery County Sen. Craig Zucker, both Democrats, would prohibit the Maryland Department of Health from removing someone from Medicaid or home- and community-based services for missing paperwork. Unless the agency first tries other ways to verify their eligibility, clearly notifies them of the problem, and confirms that the notice was received, coverage must continue uninterrupted.

The bill would also require the department to continue services during eligibility appeals, meaning if someone challenges a decision to terminate their benefits, services would not stop while that appeal is pending.

Under current practice, participants removed from Medicaid have 30 days to submit renewal information. If the paperwork is incomplete, services immediately stop.

Advocates said that, while the department is following existing policy, administrative delays and procedural terminations have temporarily left eligible individuals without coverage. For instance, between January 2024 and December 2025, 19,387 individuals were enrolled in a Developmental Disabilities Administration (DDA) waiver. This Medicaid program allows people with developmental disabilities to receive long-term care services in their homes or communities rather than in institutions. During that period, 1,747 were disenrolled, including 107 for procedural reasons, according to the Department of Legislative Services.

Supporters, some of whom testified in person while others testified on Zoom during the committee hearing, said the bill comes at a moment of heightened uncertainty for Maryland’s disability community — not only because of widespread Medicaid eligibility disruptions, but also because of renewed budget pressure on the Maryland Developmental Disabilities Administration. There was no opposition or any kind of deliberation from lawmakers or residents during Tuesday’s hearing.

The proposal comes as Gov. Wes Moore has proposed reducing projected DDA spending growth by roughly $150 million in fiscal 2027 as part of efforts to close the state’s $1.4 billion deficit. While overall DDA funding would still increase, disability advocates argue the reduction could strain services for individuals with significant needs and for roughly 4,000 people on the agency’s waiting list.

The Moore administration has maintained that DDA spending has grown by nearly $1 billion since fiscal 2023 and that adjustments are necessary to maintain compliance with federal “cost neutrality” rules, which require home- and community-based services to remain less expensive than institutional care.

Advocates told lawmakers Tuesday that since pandemic-era protections ended and eligibility redeterminations resumed, families and providers have faced widespread administrative “breakdowns.”

“When Medicaid coverage ends for this group of people with developmental disabilities … services cannot just stop. People rely on these services for medication management, behavioral supports, 24-hour residential support and day and employment supports. These services are vital,” Laura Howell, CEO of the Maryland Association of Community Services, told lawmakers Tuesday, warning that organizations like hers are draining reserves to avoid interrupting care.

If passed, the bill would take effect Oct. 1, 2026, and require quarterly public reporting beginning in 2027 on Medicaid renewals, procedural terminations and processing times. The committee did not vote on the measure Tuesday, nor did any lawmakers raise concerns. State budget negotiations, including DDA spending, remain ongoing.

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