Rate Increases Pursuant to SB81

Effective January 1, 2020


DDS Letter: Rate Increases January 2020

SB 81 provided the Department of Developmental Services (Department) with time-limited funding in state general funds and associated federal funds to provide applicable vendors with a rate increase, effective January 1, 2020 through December 31, 2021. These rate increases are contingent upon approval from the Centers for Medicare and Medicaid Services for matching federal funds. Once the approval has been obtained, the Department will notify regional centers. The rate increases shall be suspended at the end of the effective period unless certain conditions, as specified in SB 81, apply.

Pursuant to Welfare and Institutions (W&I) Code section 4691.12, the rate increases only apply to:
• Rates set by the Department;
• Rates set through negotiation between the regional centers and service providers;
• Rates paid for supported employment services, as specified in W&I Code section 4860(a) and (b); and,
• Vouchered community-based services, as specified in W&I Code section 4688.21(c)(7).