Rate Reform Latest

Rate Reform in California’s developmental services system means changing the way the state pays for services. The goal is to make sure that the payment system is fair, supports providing high-quality care, and that it helps people get the services they need. Payments are made by the Department of Developmental Services (DDS) through regional centers to all service providers. The payments are reimbursements for services provided to individuals with intellectual and developmental disabilities (I/DD) and families.     Rate reform work began in 2019 after the Legislature required the delivery of a Rate Study regarding how services are provided and paid statewide. Rate Reform is being rolled out in stages.  The 2024-25 Budget Act changed the full Rate Reform implementation date to January 1, 2025.       There are several programs and projects happening at DDS that are part of the Rate Reform stages. This includes the Quality Incentives Program (QIP), the statewide Provider Directory, the new Consumer Electronic Records Management System (CERMS) and Uniform Fiscal System Modernization UFSM system, and more. You can read more about each program or project in the update sections below.   Individuals and families receiving services should not experience interruptions to services as Rate Reform progresses. You may hear conversation about changes in service codes in your meetings with your regional center. This should not affect the services you need and receive. Read more on the Rate Reform page of the DDS website. We appreciate everyone’s support on Rate Reform efforts. This work will make services more accessible, more consistently provided across the state, and paid in a way that is transparent and equitable.

Quality Incentive Program (QIP)

As part of Rate Reform, the Quality Incentive Program (QIP) helps improve the quality of services and supports provided to individuals and families. For the past two years, some providers have been able to earn one-time incentive payments for submitting certain information and/or achieving measures.  Measures are ways to evaluate the quality of services carried out by providers. Each measure was developed with input from the community and developmental services professionals.  QIP measures include the following areas: 
  • Workforce Capacity    
  • Early Intervention    
  • Employment    
  • Informed Choice and Satisfaction   
  • Prevention and Wellness    
There are several workgroups that provide input on measure development and QIP progress. You can learn more about those workgroups and the QIP measures on the DDS website. Visit the Quality Incentives Program page. Beginning January 1, 2025, the quality incentive payments will be connected to service provider reimbursement rates for all service providers.  Service providers may earn the quality incentive payment by updating and verifying their information for the new Provider Directory.  Read more about the Provider Directory in the next section.

Provider Directory in Progress

The Provider Directory is an online portal that will be used to input, store, and view information about service providers statewide. When fully developed, individuals with I/DD and families will be able to search the Provider Directory for service options. The Provider Directory will make it possible to find where services are available or may be needed. It could also help track the development of new resources. Service providers may earn incentives from the Quality Incentive Program (QIP) for providing and confirming their information for the Provider Directory.  These incentives may include a one-time cash payment and/or a portion of the provider’s reimbursement rate beginning January 1, 2025.    The Provider Directory will be rolled out in several phases. DDS is currently working with regional centers and service providers to collect and verify service provider information.  The portal will be made public at a later date. DDS will provide updates as each phase is complete and will be seeking input from the community for future phases.   You can stay on top of the latest updates on Provider Directory website.
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