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Committee accepts language for developmental service payment reform, requires progress and final reports to appropriations committees
Summary
Conference committee members agreed to language on a developmental services payment reform model that requires progress and final reports and mandates that the final report address provider rates and financial status; staff described how the reports must be delivered to relevant appropriations and human services committees.
Members of the conference committee working on the FY26 budget accepted language for the developmental services payment reform model and set reporting requirements to legislative appropriations and human services committees.
A committee member introduced section E333 on the developmental services payment reform model and said the parties had negotiated language that all involved had reviewed. The language requires a progress report and a final report to the fiscal committees that explain methodology, document how the model meets federal conflict‑free case management requirements and ensure standardized provider rates that are “reasonable and adequate” and reflect the cost of service delivery to achieve the required outcomes for the population served.
The final report must also include the impact on designated and specialized service agencies and provider financial status, and the committee added that reports should reflect input from providers and individuals served. The transcript notes a statutory reporting date: on Feb. 15, 2026, the department will present an update to the House Committee on Appropriations and the House Committee on Human Services and to the Senate Committee on Appropriations and the Senate Committee on Health and Welfare regarding progress implementing the developmental service payment reform model.
One committee member moved to accept the language. "I would move that we accept it," the committee member said; the motion was described as accepted in the meeting transcript and staff indicated the language had been vetted by required parties.
The committee directed staff to include the agreed language in the packet and to circulate the final bill text and supporting materials to members before floor action.
