This email includes the latest developments for rate reform, and the Quality Incentive Program (QIP), including the Provider Directory.  Thank you to all regional centers and service providers for your partnership in advancing these efforts.

Need-to-Know

Rate Reform Update:

• The Department posted the updated rate model rates that represent changes based on the January 2024 minimum wage and IRS mileage increases. Additionally, the newly posted rates include the final increase of rate reform implementation, effective January 1, 2025, that accounts for the impending increase to minimum wage as of January 1, 2025. See complete rates by regional center.
• The 2019 Rate Study recommended that the Department develop a specific Employer of Record (EOR) as a distinct rate model for services like respite and personal assistance. Instead, effective January 1, 2025, with the final increase of rate reform implementation, EOR providers will not have a separate rate and will align directly with agency rates. EOR providers will have a separate subcode for tracking purposes only. 
• Information for January 2025 rate reform implementation will continue to be released in a series of directives. Directives provide regional centers and providers with guidance on service descriptions, new components, and timelines. They can be found on the rate reform directives and updates webpage. 
• The first rate reform overview training webinar was held on September 26, 2024. There will be additional webinar trainings scheduled in the coming weeks to cover service area specific information. Regional centers, providers, and the public are encouraged to attend the trainings. 
• Registration information for additional upcoming training dates will be released soon. Information and recordings of each training webinar will be announced and also available on the “Meetings” section of the rate reform website.  
• Weekly office hours for regional centers began October 9th and will continue on Wednesdays from 1pm-3pm. These office hours provide an opportunity for regional centers to ask questions about previously held training webinars or other questions related to rate reform implementation. The past two office hours have averaged 75 participants from all 21 regional centers. 

Provider Directory Update:

The Provider Directory is undergoing testing and will be launching this week. Service providers will receive a registration link once launched and will need to verify that all the information collected is true and accurate in the Provider Directory.   

For service providers included in rate reform, participation in the Provider Directory measure is the only way to attain the up to 10 percent quality incentive portion of the reimbursement rate from January 1, 2025 through June 30, 2026. 

Quality Incentive Program (QIP) Update:

• Planning is underway to form QIP focus groups for future evolution of measures. Meetings will be scheduled before the end of 2024. These groups will meet to discuss individual outcome measures that align with the vision and goals of the QIP. They will also discuss foundational data needs, including data that potentially can be collected through the Provider Directory. 
• QIP Early Intervention measure incentive payment instructions covering the second quarter of 2024 are being prepared. These incentive payment instructions will be sent to regional centers tentatively in November 2024. More information about this measure can be found here and here. 

Next Steps (Key take aways, action items, or important dates): 

What is Rate Reform?

Rate reform in California’s developmental services system means changing the way the state pays for services. If you were forwarded this email and would like to learn more, visit the rate reform website or sign up to continue receiving these updates.