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Virginia parents and providers urge General Assembly to raise DD waiver rates, expand slots

Senate Finance and Appropriations and House Appropriations Committees (joint regional hearing) · January 8, 2026
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Summary

Parents, providers and disability advocates told the joint Senate and House budget committees that low Medicaid reimbursement rates and long DD waiver wait lists are forcing caregivers to quit, shrinking program capacity and harming people with developmental disabilities. Witnesses asked for across‑the‑board rate increases, more waiver slots, and protections for live‑in caregivers.

Parents, providers and disability advocates urged the General Assembly in a regional budget hearing to raise Medicaid reimbursement rates for developmental disability (DD) services, expand DD waiver slots and preserve exemptions for live‑in caregivers.

Lisa Escotto, a Fairfax parent who cares for her 19‑year‑old daughter Elena, said caregivers in Northern Virginia earn "$17.97 an hour" under the CCC Plus waiver and that the low pay makes it "very hard to find and keep competent staff." Escotto said Elena relies on waiver supports to live safely and urged the committees to fund more DD community living waiver slots so families can plan before a crisis.

Holly Rodenheiser, vice president of Circle (formerly Lutheran Family Services of Virginia), asked lawmakers to remove a proposed 2.5% cap on private day‑school reimbursement increases and to protect Medicaid waiver funding for people with intellectual and developmental disabilities, saying capped rates would undercut specialized programs that partner with local school divisions.

Multiple speakers, including providers and parents, referenced a DMAS rate study that recommended larger increases and a court‑ordered permanent injunction covering a subset of DD services. Carol Skelly said the study showed average recommended increases of about 28% and warned that the governor's budget omits increases for roughly half of the waiver services covered by the injunction; she said the omission threatens residential programs and other core supports.

Family testimony illustrated the consequences. Mara Flynn described how low pay and turnover in Arlington group homes destabilize individuals who require consistent staff, and Elizabeth Colter recounted caring for a son with frequent seizures who depends on respite and waiver support. Speakers repeatedly linked inadequate rates to recruitment challenges and program capacity shortfalls.

Several witnesses opposed proposed language that would remove the existing exemption for live‑in caregivers from Electronic Visit Verification (EVV) requirements, arguing that EVV is designed for short scheduled visits and does not reflect continuous live‑in caregiving. Teresa Champion and others said removing the exemption would burden elderly family caregivers and risk forcing live‑in caregiving out of the formal system.

The testimony included specific budget asks — increases in reimbursement rates, funding for a study of core services (cited as a $250,000 request by one witness), and expanded SRAP housing vouchers — and emphasized both immediate safety concerns and longer‑term system sustainability.

The committees did not vote on any item during the hearing; Senator Morrison later told the room the DD waiver situation "has become and continues to become critical" and encouraged looking across state spending for reallocation.