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Committee reviews home‑and‑community‑based services rate study and 2% provider increases

2953448 · April 10, 2025
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Summary

Joint Fiscal Office summarized House and governor budget items funding a rate study and a 2% increase for many home‑ and community‑based services providers; staff said some provider categories may be omitted and advocates should be consulted for technical corrections.

The Senate Health and Welfare Committee received an overview April 10 of budget language funding a rate study for home‑and‑community‑based services and a 2% across‑the‑board increase for many providers.

Joint Fiscal Office staff said the rate‑study item funds analysis of provider payment levels and was intended to identify the amount required to bring targeted provider rates up to a recent benchmark. Emily Byrne described the line as funding a study created in 2023 that identified options for enhanced residential care and other provider types.

The presentation listed a gross increase of about $6,800,000 tied to the study and related adjustments, with roughly $2,800,000 as the general‑fund share. Committee staff highlighted that the 2% rate increase covers most — but not all — home‑and‑community‑based providers and that the proposal spans multiple budget sections because those providers receive funds through several agencies.

Byrne said the increase covers assisted community care services (ACCS), substance‑use disorder providers, designated agencies (DAs), specialized service agencies (SSAs), adult day, shared‑living providers, traumatic brain injury services, personal care, homemaker, respite, and other categories listed in the budget pages. She and staff cautioned that some providers may have been omitted inadvertently and recommended legislators consult advocates such as Jill Olsen to verify coverage.

The committee did not adopt changes Wednesday; members were advised to raise any missing providers or technical fixes in the appropriations hearings that follow.

The briefing distinguished the study (a policy analysis to determine needed funding levels) from the 2% operational rate increase, and staff emphasized that the gross totals shown in the budget reflect allocations across multiple appropriations sections rather than a single line item.