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Committee tables appropriation to fund Medicaid waiver rate increases for developmental services
Summary
House Bill 42, a budget appropriation to provide rate increases for six Medicaid waiver services for people with developmental disabilities, was presented and then tabled by the committee after discussion of funding sources and federal match.
Representative Cates presented House Bill 42, a straight appropriations bill that would provide state funding to implement rate increases recommended in the 2023 Medicaid rate study for services under the developmental disabilities waiver.
Jim Copeland, executive director of the Association of Developmental Disabilities Community Providers, told the committee six service categories that lacked funding in the 2023 rate study would receive a 7.32% rate increase under the appropriation. Copeland said the increases would cover labor‑intensive services including residential supports (24‑hour group homes) and day services.
Committee members asked whether the requested funding is included in the state budget vehicle, how federal matching funds would apply, and whether the state would need a federal waiver or CMS approval for changes. The Health Care Authority and sponsoring members said the state portion requested for these rate increases is in House Bill 2; HCA confirmed that federal Medicaid matching funds apply and that the state would include any necessary CMS rate-change requests as part of standard waiver administration, not as a separate new waiver.
Representative Pettigrew and other members pressed for detailed line‑item distribution and asked for documentation showing which specific waiver categories would receive increases. Copeland clarified that the six categories are four levels of supported living services (levels 1–4), customized community support services, and customized in‑home support services; the level 4 supported living category had a 1% recommended increase that the presenters said should be treated with the others.
After discussion, Vice Chair Dixon moved to table House Bill 42; the motion carried with no recorded opposition in committee. Committee staff and HCA said they will provide additional documentation to members about the waivers, the specific service rates, and the federal match percentages, and members said they expect that reporting and distribution details will be resolved through budget staff and the Legislative Finance Committee processes.
Speakers quoted in this article addressed House Bill 42 during the committee meeting.
