The Joint Appropriations Committee (JCA) provided a letter of intent to state department leaders regarding provider rates approved in the recent legislative session. The letter of intent provides specific policy guidance to the departments regarding FY 2018 and FY 2019 budgets.
As outlined in HB 1320, the 2018 legislature approved a base funding increase to 90 percent of methodology cost reimbursement for community-based providers, an additional 2 percent base rate increase to community-based providers and a 0.5 percent base rate increase to all other providers. These providers will continue to receive the base-rate increase in FY 2019, as outlined in Attachment 1 of the letter of intent.
Also, as outlined in HB 1044, the 2018 legislature approved a one-time provider funding enhancement, including a 2 percent rate increase to community-based providers and a 0.5 percent rate increase to all other providers, for the final three months of FY 2018.
In addition, rates will be increased to 90 percent of methodology cost reimbursement for the final three months of FY 2018 and direct care and support staff workforce funding (excluding any administrative positions) for community-based providers, currently reimbursed at or above 90 percent of methodology costs. These providers will receive a rate increase for FY 2018, as outlined attachment 2 of the letter of intent.
The facility payments are based on actual services provided, so there is no facility-by-facility breakout; however, the direct care and support staff workforce funding is equal to a one-time 4.6 percent bonus for FY 2018. Please review the letter for additional details.
