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Committee clears bill to align service budgets for DD waiver ‘MiVIA’ program; state cost offset by federal match, not a GRT exemption
Summary
Committee approved House Bill 357 to change how certain Medicaid waiver service budgets account for local gross receipts taxes so recipients receive comparable service dollars statewide. Supporters said the change corrects an inequity that reduced services for people in higher‑GRT jurisdictions; fiscal witnesses said the change increases state
Lawmakers voted to advance House Bill 357, which changes how budgets for a subset of developmental‑disability waiver services (sometimes called MiVIA or similar supportive services) are calculated so that recipients nationwide retain comparable service purchasing power regardless of local gross receipts tax (GRT) rates.
Representative (sponsor) introduced the bill and said the current structure leaves individuals in higher‑GRT areas with less money for direct services because private, for‑profit providers must remit GRT from the same capped service budget used to buy supports. Joel Davis, vice president of Elevate the Spectrum, told the committee that the change would expand access in rural areas by making private providers financially viable where nonprofits are scarce.
Nut graf: The committee heard fiscal testimony that the bill would increase state Medicaid spending in order to capture substantial federal matching dollars. Witnesses estimated an FY26 state investment of roughly $7.2 million would draw approximately $18.3 million in federal Medicaid match (stated testimony), and the Legislative Finance Committee warned the bill is not a GRT exemption but rather an adjustment to Medicaid budgeting that increases state Medicaid spending and local GRT revenue collection by enabling more services to be billed under the waiver.
Key testimony
- Services covered: Witnesses described services such as occupational and physical therapy, speech‑language therapy, residential supports, employment supports, day habilitation and in‑home living supports. Tracy Perry, a direct‑care provider, said the in‑home living service often consumes a large share of a consumer’s budget and leaves insufficient funds for therapy and other supports.
- Fiscal impacts: Joel Davis and other presenters testified to a projected FY26 state cost of about $7.2 million that would leverage federal matching funds (testimony cited roughly $18.3 million in federal revenue). Additional LFC figures presented showed increased general fund impacts (testimony cited figures of about $13.1 million in FY26 growing in later years) and local government fiscal effects.
- Tax and technical clarification: An agency representative (Health Care Authority) clarified on the record that this bill is not a gross‑receipts‑tax waiver. Instead, the bill directs Medicaid payment and budgeting practices so that providers can bill for services without leaving recipients with reduced service levels in high‑GRT jurisdictions.
Votes and process
The committee voted to report House Bill 357 with a do‑pass recommendation. The roll call recorded a majority of yes votes; the motion carried and the bill moves forward for further consideration.
Ending: Supporters described HB 357 as correcting an inequity that reduces services for waiver recipients who live in higher‑GRT areas and as a way to expand provider participation in rural areas. Fiscal witnesses emphasized the state cost and noted that the change would generate significant federal match that increases total program resources.
