The State of California minimum wage increases to $13.00 per hour for employers with 26 or more employees and $12.00 per hour for employers with 25 or fewer employees on January 1, 2020. The Department of Developmental Services (DDS) has been allocated additional funds by the Legislature for dissemination to service providers to meet the increased minimum wage mandate. It is important to note that the funds allocated by DDS are solely to meet a service provider's costs to increase employee/staff wages to $13.00 per hour (or $12.00 per hour based on the number of employees) and the associated mandated costs (i.e. Social Security, Medicare and workers’ compensation). Please click on the link below to read the letter from DDS, then click on the Workbook link to complete your request for a rate adjustment. SPECIAL NOTE: Only one rate adjustment request per workbook. You must submit one workbook for each vendor number. REMINDER: The deadline to submit is March 1, 2020. Requests submitted after the deadline will not be considered.
Provider Rate Study
Following at the end of this are the presentations that have been shared at rate study meetings for Lanterman service providers. They are broken down into type of service provided.
Regional Center Specific Rate Models
View at: http://www.burnshealthpolicy.com/ca-regional-center-specific-rate-models/
Rate Study Fiscal Impact
The anticipated total cost of implementing the rate study recommendations is $1.8 billion (Total Fund), which is about $1.1 billion (General Fund) annually. Here is a link to the anticipated fiscal impact by service code ( ).
View at: http://www.burnshealthpolicy.com/wp-content/uploads/2019/03/Attachment-5-Fiscal-Impact-Analysis.pdf
Rate Study Submitted by DDS to Legislature on March 15
The Department of Developmental Services (DDS) submitted the rate study on the provision of community-based services for individuals with developmental disabilities to the California Legislature on March 15.
The rate study includes four parts:
- Part 1 summarizes the various methodologies for establishing rates for home and community-based services and outlines current rates and methodologies in California.
- Part 2 provides an overview of the study, including the project’s timeline, principles adopted to guide the study, and data sources used to inform rates.
- Part 3 covers the major components of the rate models, including direct care worker wages, benefits and productivity, indirect costs such as program operations and provider administrative costs, and adjustments to account for regional cost differences.
- Part 4 provides a summary of the rate study results.
The rate study report and links to supporting documents are also posted on the DDS website at https://www.dds.ca.gov/RateStudy/.
Eyes on the Prize: A Note to VAC Representatives to Rate Study Presentation
The actual statute (W&I 4519.8) addressing the rate study accompanies this note. Please read it carefully. The key elements have been highlighted to focus our attention on the true purpose and deliverables we need to keep in mind. The essential purpose of this study and proposals for a new rate system is to establish the most cost-effective way to ensure that high quality services are available to all consumers of regional center services whatever their specific service needs may be and wherever they may live within the State of California.