Robert Cagle, an advocate who testified in public comment to the Legislative Health & Human Services Committee, said the governor’s budget requested $331 million for the DD waiver program and specifically requested $28 million for provider-rate increases based on a PCG rate study. Cagle said the PCG study recommended a 3.7% increase for fiscal year 2025 and that the Legislative Finance Committee recommended $26.3 million for provider-rate increases.

“HB2 passed. The $26.3 million was put in for FY26,” Cagle said, but he told the committee that the fiscal year was ending and no provider-rate increases had been implemented. He argued the state was out of compliance with federal Medicaid requirements that payment rates be consistent with quality of care and sufficient to ensure availability of services in the geographic area.

Cagle said legislative documents and agency materials support the funding recommendations but that, notwithstanding authorization in the budget bill, an increase had not been executed by the end of the fiscal year. He urged the committee and lawmakers to follow up to ensure provider payments are implemented so services remain available.