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Developmental services waiver seeks $10 million for room‑and‑board; providers report about 500 unmet needs
Summary
Department officials told Finance Division 3 that residential providers face rising room‑and‑board costs, the department requested $10 million in general funds, and providers reported roughly 500 additional individuals who need room‑and‑board support beyond current funding.
Department of Health and Human Services staff told Finance Division 3 on March 10 that room‑and‑board funding for residential developmental services is a top priority and that current state funding covers only a fraction of documented need.
Jessica Gordon, bureau chief for the Bureau of Developmental Services, told lawmakers the developmental services waiver serves about 5,061 individuals on the DD waiver; the bureau also administers an acquired brain disorder waiver and a children's in‑home support waiver. Gordon said providers have supplied a list of approximately 500 individuals who need room‑and‑board funding.
“Right now, we have a list of about 500 individuals who need room and board funding,” Gordon said. Laurie Vash, chief operating officer for the division, added the state currently has roughly 240 certified beds that providers can bill for room and board and that the funded capacity covers only part of demand.
The department put a $10,000,000 general‑fund request for room‑and‑board support in its prioritized needs. Melissa Hardy, division director, told the committee that room and board costs (rent, utilities, food, phone/internet and property maintenance) are not covered by Medicaid waivers and that providers are reporting rising operating costs. “The real danger in not funding this prioritized need is that we've heard from providers that they just cannot keep the service going without those additional costs supplemented,” Hardy said.
Committee members and staff also discussed the broader DD rate study and reimbursement proposals. The department said it contracted with an actuary to review DD service costs; stakeholders reported that existing rates had not been studied in several years and were too low to attract providers. The department listed other prioritized needs for the bureau: funding for waitlist requests, further rate development, guardianship slots and ongoing pilot program extensions. The committee noted that funding a cohort in one fiscal year will increase the base in subsequent years because annualization of services carries forward into later budget years.
Ending: Lawmakers asked for further data on the number of current room‑and‑board recipients, the number of certified beds, and counts of unmet need and requested the department provide more detailed breakdowns so the committee can evaluate fiscal impact and risks to provider stability.
