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S.F. No. 833 - Disability Waiver Services Medical Assistance (MA) Rate Reductions Phase In
Author: Senator Paul J. Utke
Prepared By: Liam Monahan, Senate Analyst (651/296-1791)
Date: March 6, 2017


SF 833 requires the commissioner to phase in rate reductions for day services and supported employment services provided under the disability waivers.  Currently, rates for day services are subject to a banding period, during which rates for individuals who were receiving the same services on December 31, 2013, cannot increase or decrease more than is permitted in statute.  The banding period is scheduled to end in either 2019 or 2020, depending on pending federal action. Whenever the banding period does end, rates for what are currently categorized as day services are projected to decrease for certain individuals.  Meanwhile, multiple legislative proposals exist to modify the definition of day services by removing certain employment-related services from day services and creating new services.  Of particular relevance is the proposed supported employment services and the new rate associated with this service.  SF 833 will benchmark an individual’s rate for day services or supported employment services to the rate for day services in effect for that individual on July 1, 2017, and prohibits the commissioner from reducing an individual’s rate for day services or the individual’s rate for the new employment support services by more than one percent per year from the benchmarked rate.

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