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Providers urge higher DD‑waiver rates, citing wage gaps and minimum‑wage impacts
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Summary
Providers and advocates told the Senate committee that developmental‑disability waiver services need significant rate increases (some services 7%–30%+), higher direct‑support wages ($22–$24/hr target), and rate adjustments tied to minimum‑wage changes to avoid program closures.
John Weatherspoon, board member of the Virginia Network of Private Providers and CEO of Wall Residences, told the hearing that a recent rate review found many developmental‑disability (DD) services need between 7% and 30% or more in rate increases. "We needed to increase direct support professional pay in those services to $22 to $24 an hour with employee related expenses of 29.4% on top of that," Weatherspoon said, noting current provider pay is in the range of $16 to $20 an hour.
Weatherspoon asked senators to support amendments to increase rates for DD waiver services across the board (citing targeted increases on 07/01/2026 and 01/01/2027) and warned that services receiving 0% increases could close in 2027, reducing options for people who have waiver slots.
Other witnesses also raised related issues: Ashley Whittle Osborne of Encircle urged protecting Medicaid waiver funding that supports community‑based living and private day schools serving students with intensive needs, saying tight reimbursement caps and low Medicaid rates limit providers' ability to recruit and retain staff.
The testimony urged lawmakers to align rate changes with labor cost realities and to consider targeted budget amendments to sustain community services for people with intellectual and developmental disabilities.
