Posted on July 10, 2012 10:39 pm

Budget Update

Both the Senate and Assembly approved the Department of Developmental Services (DDS) plans for reducing developmental services by $200 million in 2012-13. The budget was passed by the legislature, and signed by the Governor the last week in June, 2012.

The Department of Finance Full Budget Summary included this summary of Developmental Services Systemwide Reductions:

"The Budget reflects $200 million in 2012-13 savings. Savings will be achieved by increasing eligibility for federal funding, increasing insurance billing for certain autism-related services, redesigning options for consumers who have been hard to serve in the community, and a 1.25% provider payment reduction."

The following items were included in the Fiscal Year 2012-13 Trailer Bill language (AB 1472) or in separate legislation as noted:

Service Provider Payment Reduction

Effective July 1, 2012, the payment reduction for regional center operations and for providers of services and supports funded through purchase of service (POS) will be 1.25%. This represents a partial restoration of payments, compared to the reduction of 4.25% which had been in effect since 2010.

Autism Service Providers and Private Insurance

Regional Centers will be required to begin the implementation of recently passed Senate Bill 946. Families of children with a diagnosis of autism, who have private insurance coverage, will be advised to obtain coverage for autism services (which will include behavioral health treatment) as now required by this bill. Autism Service providers have been working with Health Insurance providers to get ready for this change.

Independent Assessments for Individuals Living in Supported Living Services (SLS)

Regional centers are no longer required to purchase an independent assessment for individuals receiving, or entering, supported living when those costs exceed 125 percent of the annual statewide average cost of SLS. The Department of Developmental Services (DDS) and numerous stakeholders developed a standardized assessment questionnaire to be used by the Individual Program Plan (IPP) team to ensure individuals in supported living arrangements receive the appropriate amount and type of supports needed. The questionnaire is posted at: