The year is winding down, but the work to improve the infrastructure and future of California’s developmental disabilities services system continues! Below are the latest information and action items supporting the progress of rate reform, the Quality Incentive Program (QIP), and the Provider Directory. We’re grateful for your ongoing partnership and investment to make these efforts successful. 

All previous editions of these updates can be read on the rate reform directive and updates webpage. 

Rate Reform Update: 

• Provider rates will be updated and posted on the Reimbursement Rates webpage no later than January 1, 2026. These updated rates will reflect only the 2026 minimum wage, Internal Revenue Service (IRS) and Social Security Income (SSI) increases. These increases are built into the updated rates for all service codes included in rate reform and providers will not need to submit requests for these increases to the Department. 
• Day Services providers may continue to use their current billing methodology (daily or hourly) as stated in the December 2024 Day Services Directive. This will continue until the Department releases additional guidance. 
• The Department is addressing provider feedback to look at possible rate adjustments for Transportation Company (875), Transportation-Additional Component (880), Transportation Broker (883). Surveys were sent out to all providers in these areas using the provider emails listed in the Provider Directory, and the deadline to return them was November 22, 2025. The surveys gave providers in these areas an opportunity to report costs associated with highly congested traffic areas, differences between time/costs for non-ambulatory or ambulatory transportation, and service components of transportation broker services. 
• New updated rates and billing methodology for Transportation Company (875) and Transportation Broker (883) went into effect November 1, 2025.  
• Residential rate worksheets for Level 7 homes (Adult Residential Facilities for Persons with Specialized Healthcare Needs/ARFPSHN and Specialized Residential Facilities/SRF) are being reviewed by the Department and HMA/Burns. Surveys were sent out to service providers using the email contacts in the Provider Directory on October 16, 2025, and were due back by November 17, 2025. This information will be used to further evaluate the rate worksheets. 
• The Department intends to establish a rate model for Tailored Day Services (TDS). This will include scheduling provider workgroups beginning early in 2026 for input and collaboration. 
• Office hour opportunities continue for regional centers twice a month to provide assistance with rate reform implementation, including all of the above topics. If you would like more information about how to join, email ratesquestions@dds.ca.gov. 
• Most service providers have transitioned into service codes that align with the services provided, but there were some providers that did not fit well into rate reform service codes, or their existing service code did not have a rate model. The Department used an exemption process to review these services and determine if there were rate models that they would be able to “crosswalk” over to and if not, these vendors could continue in their current service codes with an approved exemption. For those services that received an exemption, we will now look at how we can best support these specific areas moving forward. The main exempted categories continue to be Social Recreation, 1:1 services, Medical Coordination, Project Search/similar programs, and College-to-Career programs. Workgroups will be set up to address these areas beginning early 2026.

Quality Incentive Program (QIP) Update: 

• Starting on November 3, 2025, providers who operated and delivered services to individuals in fiscal year (FY) 2024-25 began to receive a unique hyperlink to a survey(s) they should complete to earn the QIP portion of their rate effective July 1, 2026, through June 30, 2027 (FY 2026-27). Providers must submit their completed surveys by January 31, 2026, and meet the requirements listed below to earn the full QIP portion of their rate.  
• To earn the QIP portion (up to 10%) of their rate for FY 2026-27, service providers must review and complete the steps in the provider checklist, including: 
• Complete the QIP survey(s) sent to the email addresses service providers registered and validated in the provider directory. 
• Ensure compliance with independent audits or reviews, Electronic Visit Verification (EVV), and Home and Community Based Settings (HCBS) final rule compliance by February 28, 2026. More detailed information about these requirements can be found in this QIP directive.  
• Fact sheets, user guides, plain language versions of directives, and other helpful resources for service providers have been added to the QIP webpage under the QIP Overview, Prevention and Wellness, and Employment, and Provider Capacity tabs. Additional resources and trainings will continue to be added to the webpage throughout the data collection period (November 2025 – January 2026). Providers are encouraged to review these materials and training videos prior to beginning their surveys. 
• Focus groups will convene beginning January 2026 to discuss potential reporting measures for the following new QIP service code groupings: 1) Day Programs, 2) Independent Living Skills, Supported Living, and Respite, and 3) Behavioral Services. Interested individuals, families, advocates, and providers may respond to this focus group interest survey to be considered for future participation. 
• The next quarterly QIP Workgroup meeting will be held on December 15, 2025, from 2 p.m. to 4 p.m. This virtual meeting will include information about provider reporting and participation in the QIP reporting measures which launched on November 3, 2025. It will also include information about the one-time incentive measures, which will have concluded by the end of November 2025, and upcoming focus groups and QIP measure development to inform provider rates for FY 2027-28. Registration information for this meeting will be posted on the Department’s stakeholder events webpage prior to the meeting.  

Provider Directory and Standardized Vendorization Update 

• The Directory now has built-in digital tools, such as automated email notifications, reminders for timelines, history of communication and integrated services like address validation and Adobe e-signature. 
• The new, standard way for service providers to become vendors through the Provider Directory has been developed, and User Acceptance Testing has been completed. This is called Standardized Vendorization (vendorization). 
• The vendorization steps and processing timelines in the Provider Directory can be viewed in the Vendorization Steps and Response document.   
• The Department released a directive on standardized vendorization on November 14, 2025, along with a webpage template for regional centers to add a “How to Become a Service Provider” webpage to their sites.   
• Starting December 3, 2025, potential providers can begin the vendorization process in the Directory. 
• Beginning March 1, 2026, all vendorizations (excluding the Self Determination Program and the next sub-bullet below) must be done in the Directory.  
• Purchase Reimbursement (service code 024) vendorization applications may continue to be submitted manually through June 30, 2026; and effective July 1, 2026, must be completed in the Provider Directory. 
• The Department hosted demos of the vendorization portal for regional centers to provide awareness of the design and high-level overviews of how to become a vendor using the Directory.   
• The Department will host an overview of the standardized vendorization process for service providers at a Town Hall on December 2. Details for how to register are on the Department’s event webpage. 
• Step-by-Step Guides, recorded videos, FAQs and other resources will be available on the Department’s website the first week of December.  
• Office hours will be hosted for regional centers after the vendorization portal launches to help answer questions and to provide technical assistance. Information about the schedule and how to attend will be provided via email. Service providers should contact their vendoring regional center with any questions. 

QIP One-Time Incentive Payments 

*Tentative Release Date

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