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Rate reform moves into final implementation; providers, department and LAO flag technical fixes and oversight needs
Summary
Officials described the Jan. 1, 2025 completion of the rate-reform schedule and an ongoing quality-incentive program tied initially to provider validation in the new statewide provider directory; stakeholders urged legislative oversight and technical adjustments to avoid unintended destabilization.
The Department of Developmental Services told the subcommittee that the rate‑reform program — a multi‑year restructuring of provider rates — reached its final scheduled implementation step on Jan. 1, 2025, but that key technical issues and quality‑incentive measures remain under development.
Director-level witnesses described the shift to a rate-model approach that includes a 90/10 structure: 90 percent of a modeled base rate is the sustainable payment and 10 percent is a…
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