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Apace warns Medicaid reimbursement and a new assessment tool are disrupting service levels
Summary
Apace director Matt Kasik told commissioners that Medicaid reimbursement rates have not kept pace with inflation and that a new state assessment tool has re‑tiered supports in ways families are challenging, creating uncertainty for providers and clients.
Matt Kasik, director of Apace, briefed Lancaster County commissioners on May 14 about financial pressures facing developmental‑disability service providers and concerns with a newly implemented Medicaid assessment tool.
Kasik said Apace serves 753 individuals across a 16‑county region, with about one‑third living in Lancaster County. He said the organization no longer receives county funding and operates on Medicaid reimbursement that is set by state law; he warned that reimbursement rates have not kept pace with inflation and that providers often operate on narrow margins.
Kasik described the new Medicaid assessment tool’s rollout as having produced "significant and unusual shifts" in funding tiers. He said some people who previously required one‑to‑one support were moved to lower tiers, while other individuals were assigned higher‑tier supervision that can be more restrictive. Kasik noted families are challenging many assessments and that the situation is creating instability for service planning.
He also highlighted recent state legislative action (LB1092) that helped create a cash fund to assist providers with vehicle purchases and accessibility improvements and thanked commissioners for advocacy during the session. Kasik defended Apace’s oversight practices, saying the organization repays the state for any billing errors and is concerned about narratives of Medicaid fraud.
Commissioners thanked Kasik for the update; no funding action was taken at the meeting. Kasik’s remarks will be considered in context with broader budget and policy discussions.
