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County staff warn proposed state IDD rate changes could create a multi‑million-dollar shortfall
Summary
Agency staff told the committee that proposed state-level changes to IDD funding are on hold because the state did not submit required materials to CMS in time; staff cited a potential $22,000,000 shortfall if a 2% reduction proceeds and emphasized uncertainty about absorption of the gap.
Montgomery County agency staff told the Health and Human Services committee the county is monitoring proposed state changes to Developmental Disabilities Administration (DDA) funding and that those changes require federal review by the Centers for Medicare & Medicaid Services (CMS) before implementation. Dr. Patrice McGee said the state DDA did not submit required materials to CMS in time, which has put an across-the-board 2% reduction on hold for now, and that advocates are anticipating a potential October 1 timing if it proceeds.
Kim Mayo said staff are projecting the pause in the reduction may result in about a $22,000,000 shortfall compared with the original full‑year savings estimate, and that it is unclear how or whether providers or the county would absorb that gap. “Right now, they’re projecting that it’s gonna end up being a $22,000,000 shortfall because, obviously, the original estimate was based on a full year of savings,” Mayo said. The committee asked staff to provide regular updates and the most recent reports on wage, turnover and customer satisfaction data so members can assess downstream impacts to providers and direct support professionals.
