ARIZONA STATE SENATE
Fifty-Fourth Legislature, Second Regular Session
developmental disability providers; rates; appropriations
Purpose
Appropriates $50,000,000 from the state General Fund (state GF) and $166,700,000 in Medicaid Expenditure Authority in FY 2021 to the Department of Economic Security (DES) to provide reimbursement rate increases for services to individuals with intellectual and developmental disabilities.
Background
The Division of Developmental Disabilities (DDD) of the DES provides services to individuals diagnosed with developmental and intellectual disabilities including cerebral palsy, autism and epilepsy. Services provided by DDD include: 1) attendant care; 2) habilitation; 3) home health aide; 4) home nursing; 5) occupational, physical and speech therapies; 6) respite care; and 7) medical services.
DDD is required to rebase the reimbursement rates for home and community-based services every five years (DES).
S.B. 1552 appropriates $50,000,000 from the state GF in FY 2021 and a blank amount in FYs 2022 and 2023 to ensure the reimbursements rates meet 100 percent of the benchmark rates by FY 2023.
Provisions
1. Appropriates the following amounts to DES to provide reimbursement rate increases for services to individuals with intellectual and developmental disabilities:
a) $50,000,000 from the state GF and $166,700,000 in Medicaid Expenditure Authority in FY 2021;
b) _____ from the state GF and _____ in Medicaid Expenditure Authority in FY 2022; and
c) _____ from the state GF and _____ in Medicaid Expenditure Authority in FY 2023.
2. Requires DES to use the FY 2020 reimbursement rate rebase study to provide reimbursement rate increases for all services to individuals with intellectual and developmental disabilities in FYs 2021, 2022 and 2023 in order for each service to receive an increase in each fiscal year, unless a service reaches 100 percent of the benchmark rate.
3. Requires DES, by the end of FY 2023, to ensure that all reimbursement rates for services to individuals with intellectual and developmental disabilities are at 100 percent of the benchmark rates, including any adjustment needed for the benchmark rates to account for any minimum wage increases.
4. Requires DES, before implementing reimbursement rate increases, to engage community stakeholders regarding DES's plan to increase rates.
5. Requires DES to submit a report to the Joint Legislative Budget Committee, before September 1 of each fiscal year, describing DES's efforts to engage stakeholders and plans to implement reimbursement rate increases for FYs 2021, 2022 and 2023.
6. Contains a legislative intent clause.
7. Becomes effective on the general effective date.
Prepared by Senate Research
February 21, 2020
LMM/kja