RCPA Announces New Mergers, Acquisitions, and Affiliations Connection Service
Jim Sharp
OCDEL Releases Early Intervention Rate Methodology Report
The Office of Child Development and Early Learning (OCDEL) has released the outcomes from the Early Intervention (EI) Rate Methodology Study that concluded in the Fall of 2024. A key focus of the RCPA Early Intervention Steering Committee’s strategic agenda has been the review of how rates have been historically developed, including the lack of sustainable rate increases that have taken place over the past two decades. In our collaboration with OCDEL and other early intervention stakeholders, the goal was the development of a quantifiable rate methodology that uses the cost of care as a driving variable in the rate development matrix.
The EI Rate Study Final Report has been added to DHS website and can be viewed here. The study was the culmination of a year-long effort led the Public Consulting Group (PCG) and an Advisory Committee, which RCPA and other provider members were a part of.
The report reviewed the methodology and formulary variables for rate calculations across several operational dimensions of early intervention services, including staffing, operations, administration, and the calculation of how missed and cancelled visits intersect with actual costs.
The final funding review of the estimated Commonwealth fiscal impact was calculated using the number of service units provided during FY 2022/23 for Early Intervention services, current Federal Medical Assistance Percentage (FMAP), and county contributions. Services with a recommended rate decrease were kept at the current rate when calculating Commonwealth fiscal impact. The result indicated that for FY 2022/23, the rates were underfunded by more than $71M, or roughly 38% of the FY 2022/23 rate.
This year there is a proposed State budget increase of $10M that is targeted to aid Early Intervention providers in stabilizing their workforce infrastructure. This would be a 3% increase over the FY 2023/24 rate. There was no rate increase last year in anticipation of the rate methodology study report. There was hope that the study outcomes, which ended in September 2024, could have made a greater impact on this year’s projected rate increase. That notwithstanding, RCPA fully supports and will be advocating that the proposed $10M funding allocation be approved for Early Intervention services in the final budget. Additionally, there is a projected Medicaid allocation of $12.6M, for a total $22.6M that will go to the final rates for FY 2025/26.
Finally, the report indicated that between the periodic rate studies, PCG recommends that OCDEL implement a rate monitoring program to measure costs annually against payments. This monitoring should also measure inflation, and OCDEL should adjust rates annually to match the rate of inflation.
RCPA thanks OCDEL and our members for the partnership in the project and looks forward to the opportunity to work together in supporting and advocating the implementation of rates that support the cost of delivering high quality Early Intervention services to the children and families of the Commonwealth.
If you have any additional questions, please contact RCPA COO Jim Sharp or IPRC Policy Director Cindi Hobbes.
Congress Passes Continuing Resolution; Updates on Medicare and Medicaid Released
Berks Commissioners Want Increased State Funding for Mental Health Services
RCPA Shares Senate Appropriations 2025 DHS Budget Hearing Overview
The Senate Appropriations Committee held the 2025 Department of Human Services (DHS) Budget Hearing at the Capitol in Harrisburg on Wednesday, March 5, 2025. DHS was represented by Secretary Dr. Valerie Arkoosh and Gloria Gilligan, Director of Fiscal Management, Office of the Budget. Other DHS leadership was also present.
The Senate Appropriations Committee was equipped with questions surrounding the proposed $21B DHS budget that focused on intersects with operating critical services for vulnerable Pennsylvanians across the human services landscape. RCPA submitted questions to the House Appropriations Committee’s legislators that voiced the concerns of the membership across all policy areas.
The hearing today covered several of those questions, including:
- The projected $2.5B dollar increase in the capitation and intersects with Medicaid unwinding in PA;
- Impacts of potential federal Medicaid cuts on state Medicaid funding;
- Addressing IDD waitlists and funding;
- The ongoing funding of SNAP benefits and how the state is addressing fraud, waste, and abuse;
- Efforts to stabilize the human services workforce infrastructure with hiring and retention funding;
- Maternal Health Care funding;
- The viability of funding for the PA Medicaid 1115 Waiver;
- Childcare and early education funding, including $10M in early intervention workforce monies;
- Concerns about the fiscal and operational risks of covering GLP-1 medications; and
- The absence of a unified plan for the allocation and implementation of the $100M in school-based mental health funding.
View the 2025/26 Department of Human Service Blue Book for in-depth budget information. Members can watch the full hearings and read the transcripts below:
Contact your RCPA Policy Director with any questions.
RCPA Shares Overview of Tuesday’s DHS House Budget Hearings
The House Appropriations Committee held the 2025 Department of Human Services (DHS) Budget Hearing at the Capitol in Harrisburg on Tuesday, March 4, 2025. DHS was represented by Secretary Dr. Valerie Arkoosh and Gloria Gilligan, Director of Fiscal Management, Office of the Budget. Other DHS leadership was also present.
The House Appropriations Committee was equipped with questions surrounding the proposed $21B DHS budget that focused on intersects with operating critical services for vulnerable Pennsylvanians across the human services landscape. RCPA submitted questions to the House Appropriations Committee’s legislators that voiced the concerns of the membership across all policy areas.
The hearing today covered several of those questions, including:
- The projected $2.5B dollar increase in the capitation and intersects with Medicaid unwinding in PA;
- Impacts of potential federal Medicaid cuts on state Medicaid funding;
- Addressing IDD waitlists and funding;
- The ongoing funding of SNAP benefits and how the state is addressing fraud, waste, and abuse;
- Efforts to stabilize the human services workforce infrastructure with hiring and retention funding;
- Childcare and early education funding, including $10M in early intervention workforce monies;
- Concerns about the fiscal and operational risks of covering GLP-1 medications; and
- The sustainability of State human services with the increases over the last several years.
RCPA will continue to monitor the hearings and subsequent reporting, and we plan to provide an overview of the Senate Appropriations Committee DHS Budget Hearing held today, March 5. If you have any questions, please contact your respective RCPA Policy Director.
Members can watch the full hearings and read the transcripts below:
Updated Guidance on Federal Funds Freeze: January 30, 2025
RCPA provided some late updates yesterday on the Federal funding freeze, and late last evening, the National Council for Mental Wellbeing provided members a legal interpretation on the rescinding of the Office of Management and Budget (OMB) M-25-13 and the issuance of the new memorandum M-25-14.
The following is from the National Council:
On Wednesday afternoon, the White House Office of Management and Budget issued a new memorandum—M-25-14 — that rescinded the pause to federal funding contemplated in a previous memorandum first issued on Monday night.
The new memorandum, which was directed to “heads of executive departments and agencies,” features a two-sentence statement reading: “OMB Memorandum M-25-13 is rescinded. If you have questions about implementing the President’s Executives Order, please contact your agency General Counsel.”
In the short term, M-25-14 certainly relieves some of the confusion and anxiety that swept across the federal grants world since Monday night. Our previous client alerts have chronicled the chaos that emerged late Monday and throughout the day on Tuesday.
However, in our review, there are still five key Executive Orders issued by the Trump Administration not affected by the rescission of M-25-13. Those EOs include:
- Reevaluating and Realigning United States Foreign Aid, directly addressing foreign assistance funding;
- Unleashing American Energy, freezing all programmatic funding for “green new deal” programs;
- Protecting the American People Against Invasion, freezing Department of Justice and Department of Homeland Security programs and contracts pending a review of immigration enforcement programs;
- Ending Radical and Wasteful Government DEI Programs and Preferencing, terminating all DEIA programs and activities in the federal government; and
- Ending Illegal Discrimination and Restoring Merit-Based Opportunity, terminating all DEIA-funded grant programs and contracts.
While the upheaval following the issuance of M-25-13 may have prompted the Trump Administration to change course and move away from pausing all federal funding, we certainly anticipate that federal grants in the above-listed areas will remain subject to a comprehensive review and new standards. Federal grantees with programs in these specific areas should undertake a detailed review and be prepared for future agency actions.
Federal grantees should continue to keep apprised of the Administration’s actions, orders, and statements relating to federal funding — as the rescinded memorandum likely foretells future clashes as the Administration attempts to exert control over federal spending.
Chuck Ingoglia
President & CEO
Strategic Leadership
National Council for Mental Wellbeing
In addition, ANCOR sent the following information last night:
In what’s turning from a whirlwind couple of days into a whirlwind week, there were notable updates today on the OMB memo on the freeze of certain federal funding issued earlier in the week.
Today OMB withdrew the memo with a simple rescission statement after a federal judge temporarily blocked the funding freeze for open awards and current spending. The order remains in effect until February 3 when a hearing is scheduled to determine next steps.
As you may have seen, later in the day, Press Secretary Karoline Leavitt posted to X, “[t]his is NOT a rescission of the federal funding freeze. It is simply a rescission of the OMB memo. Why? To end any confusion created by the court’s injunction. The President’s EO’s on federal funding remain in full force and effect, and will be rigorously implemented.” Without further specificity regarding the implicated executive orders, the situation remains fluid with the potential for later memos or other interpretive guidance which the White House maintains is authority held within the executive branch.
In other litigation, U.S. District Judge Jack McConnell made statements in court today indicating that another restraining order may be coming. With the memo rescinded, the Department of Justice Special Counsel argued the case is no longer relevant. However, the judge did not appear persuaded and asked for a draft protective order for response and consideration.
We’ll continue to keep you posted as we know more and hope to see you Friday (1/31) for our extended Members-Only Weekly Briefing at 12:30 pm ET to provide updates and review all available information together. See login information below:
Join Zoom Meeting: ancor-org.zoom.us/j/…
Meeting ID: 870 2745 7284
Passcode: 977618
In recent communications from the OMB, these actions will not impact programs that provide direct benefits to individuals and are explicitly excluded from the pause and exempted from this review process. In addition to Social Security and Medicare, already explicitly excluded in the guidance, mandatory programs like Medicaid and SNAP will continue without pause.
RCPA will continue to communicate new developments with members as they emerge. If you have any questions, please contact your RCPA Policy Director.
Update Regarding Federal Funding Freeze
RCPA continues its efforts to update members on the White House funding freeze while partnering with the National Council for Mental Wellbeing and ANCOR in examining the implications stemming from the White House Office of Management and Budget’s (OMB) January 27 memorandum temporarily freezing federal disbursements to many federal programs.
The National Council has provided the following update:
Federal agencies have been directed to fill out a spreadsheet as part of an analysis by Feb. 7 to ensure compliance with the president’s most recent executive orders. This is a breakdown of which health programs are included in this latest action.
Notably, we recognize conflicting guidance has been issued. While the above report identifies Medicaid programs, a Q&A document from the administration notes that Medicaid will continue without pause. As of Tuesday morning, all 50 states reported outages of their Medicaid online portals, and the Trump administration has stated they are aware of the outages and expect the portals to be back online shortly.
Also, several groups have taken action to block this funding freeze. As of this writing, several Democratic state attorneys general said they would ask a court to block the freeze from taking effect. Several groups representing nonprofits, public health professionals and small businesses have already filed suit in D.C. asking the court to prevent the freeze from continuing. On Tuesday evening, U.S. District Court Judge Loren L. AliKhan issued a temporary stay on the funding freeze until Feb. 3 at 5:00 pm ET.
The funding freeze may lead to project delays or cancellations, resulting in layoffs of workers involved in these programs, and may ultimately increase the unemployment rate, making it vital lawmakers understand the impact of this freeze on communities across the country.
Most notable are the concerns with the intersects of Medicaid funding though the information that has been released. The Q&A document states:
Q: Is this a freeze on benefits to Americans like SNAP or student loans?
A: No, any program that provides direct benefits to Americans is explicitly excluded from the pause and exempted from this review process. In addition to Social Security and Medicare, already explicitly excluded in the guidance, mandatory programs like Medicaid and SNAP will continue without pause.
RCPA will continue to communicate new developments with members as they emerge. If you have any questions, please contact your RCPA Policy Director.
OMHSAS Waiver Update: Conditions for In-Clinic Psychiatrist
As the behavioral health system struggles to find in-clinic psychiatric services, the Office of Mental Health and Substance Abuse Services (OMHSAS) has been issuing waivers to providers to address this barrier, while legislative remedies are pursued. There have been some waivers granted in the past year that included conditional language requiring the presence of a psychiatrist in the clinic a minimum of two days per month.
RCPA began discussions with OMHSAS that this condition was difficult to meet and it represents the actual reason for the waiver. OMHSAS has reconsidered this positon and will eliminate that language and requirement for future waivers. In the interim, providers with approved waivers with the above referenced psychiatrist requirements will need to submit a revised waiver request. RCPA thanks OMHSAS for their partnership and consideration on this matter.
If this impacts your organization, please contact RCPA COO & Mental Health Services Director Jim Sharp, who will provide guidance in the resubmission process.
2025–26 PA Legislature Committee Chairs Announcement
