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Bill would delay DWRS direct‑care compensation requirements for customized living until 2029
Summary
House File 2331, supported by customized living providers and provider associations, would delay implementation of direct‑care compensation thresholds established in 2023 for disability waiver rate settings (DWRS) as applied to customized living settings and create time for data validation and stakeholder work. Committee laid the bill over.
House File 2331 was heard April 1 by the House Committee for Human Services. The bill seeks to delay application of direct‑care compensation thresholds adopted in 2023 for the Disability Waiver Rate System (DWRS) until 2029 for customized living providers and to allow DHS additional time to refine cost‑reporting tools and stakeholder engagement.
Testimony from John Sondergaard, executive director of The Lodges and a member of the Residential Providers Association board, said small customized living providers often operate with private‑pay residents and under a different licensing and reimbursement structure than other waiver providers. He and other witnesses said the 2023 methodology may rely on inconsistent provider cost reports and that the thresholds do not account for unique licensing, staffing and overhead costs in assisted‑living/customized living settings.
Ken Bence of ARM (Association of Residential Mental Health Providers) told the committee the bill would let DHS refine its cost‑reporting tools, validate data, and engage stakeholders before thresholds become binding. Supporters asked for more stakeholder involvement and additional time to avoid closures or service reductions among smaller providers. The committee laid House File 2331 over for further consideration.
