Council signs draft stakeholder letter opposing proposed DDA rate cut that would eliminate geographic differential

Montgomery County councilors agreed to sign a stakeholder letter asking state leaders to reconsider a proposed elimination of the Developmental Disabilities Administration’s geographic rate differential, a change county staff said would reduce reimbursement rates for local providers.

Leslie Fry, a legislative analyst with the county’s Department of Health and Human Services, told the council that the governor’s proposed FY25 DDA cuts were largely restored but that a proposed FY26 package still includes about $450 million in reductions. Fry said one provision would remove the geographic rate differential that allows DDA to reimburse providers at higher rates in Montgomery County and four other counties “given the higher cost of living and doing business in Montgomery County.” The county has coordinated with other affected counties and asked for reconsideration.

During the meeting Council Member Albinaz moved and Council Member Fritzen seconded the council’s sign-on to the draft letter; the motion passed. Staff will forward the signed letter to delegation contacts and coordinate with other counties on next steps.

Why it matters: the geographic rate differential supports service providers in higher-cost counties; its elimination could lower payments to providers who serve residents with developmental disabilities and affect local service capacity.

What’s next: county staff will transmit the signed stakeholder letter to the delegation and continue coordination with affected counties and county providers.