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What is Rate Reform?
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 adjustments began in 2021-22 and the 2024-25 Budget Act set 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, including the Quality Incentive Program (QIP). Through QIP, providers can earn up to 10 percent of their rate based on the quality of the service(s) they provide. The QIP has several different measures, each related to different types of services. Measures are ways to evaluate the quality of services carried out by providers. The following areas for QIP measures were determined through the QIP’s public workgroup process: Prevention and Wellness; Employment; Informed Choice and Satisfaction; Workforce Capacity; Early Intervention; and Service Access.
A foundational measure, called the Provider Directory, has been added to the QIP. The Provider Directory will compile and provide accurate statewide information for the first time about service providers. Participation in the Provider Directory is the only QIP measure that will be used in 2024-25 and 2025-26 for establishing whether a provider will receive the quality incentive portion of the rate model for their service(s).
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