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Committee flags service disruption after conflict-free case management and payment reforms
Summary
House Human Services Chair Teresa Wood reported disruptions in developmental/intellectual disability services after simultaneous changes to eligibility/needs assessment, conflict-free case management and payment reform; providers reported payment delays, staffing moves and risk of designation loss.
Teresa Wood told the Appropriations Committee that multiple, near-simultaneous system changes'eligibility and needs assessment, conflict-free case management, and payment reform'are producing significant disruption across the developmental and intellectual disability service system.
Wood summarized testimony from providers who said case management responsibilities shifted to area agencies on aging, some staff moved from designated agencies to case management organizations and in some cases are now paid substantially more, and payment delays and information gaps have left at least one provider at risk of missing payroll. The committee said these changes have produced confusion among families about who to contact for services and have created cash-flow strains for many community providers.
Committee response: The committee recommended targeted language (technical amendments) to create accountability and clarity for implementation, and Wood said human services staff will draft language with community partners to specify recipients and amounts where appropriate. The committee plans further review of secure residential treatment, out-of-state placements, and the overall redeployment of carry-forward money in the FY27 budget process.
Next steps: Human Services recommended the House Appropriations Committee request additional departmental follow-up and JFO data to better understand payment flows, staffing changes, and long-term impacts on designation and provider solvency.
