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Committee tables appropriation to raise Medicaid waiver provider rates for six services
Summary
House Bill 42, a budget appropriation to raise reimbursement rates by 7.32% for six Medicaid waiver services (supported living levels 1–4 and two customized support services), was tabled by the Appropriations & Finance Committee; sponsors said funds exist in HB2 and the action will be revisited.
The Appropriations & Finance Committee voted to table House Bill 42, an appropriation to provide rate increases for certain Medicaid waiver service providers. The bill would fund recommended rate increases from a December 2022 rate study; presenters said one-time and recurring state dollars in the budget (HB2) would be available to cover the requested increases.
"There were 6 services that did not receive a rate increase in the 2023 rate study, and this bill would fund the rate increases for those 6 services at a 7.32% rate increase," Jim Copeland, executive director of the Association of Developmental Disabilities Community Providers, told the committee. Copeland said the affected categories are the four levels of supported living (level 1 through level 4), customized community support service, and customized in‑home support service; the funded increases would primarily cover labor‑intensive residential supports and day services.
Committee members asked whether federal approval would be required. Witnesses said the appropriation is the state portion of Medicaid-related reimbursement; federal matching funds apply, and the state would not need a new federal waiver for this appropriation because these changes fall under the existing waiver and the routine five-year rate-study process.
Committee members also asked where the requested $6.3 million figure appears in the budget. Committee sponsorship referenced roughly $10 million in HB2 for provider rate increases and $5.8 million for behavioral health provider rate increases as the broader funding pools that would cover the request. The committee did not name specific waiver line items in the bill text; the sponsor and HCA representatives said they would follow up with members and, if possible, provide line‑item allocations and further documentation.
Vice Chair moved to table the bill; the motion to table was adopted without recorded opposition. The sponsor said HCA and providers will continue to work with the committee and the legislative fiscal staff to ensure funds, reporting and federal match are in place before the committee takes further action.
