DHS Provides ID/A FY 2024–2025 Budget Clarification

Today, ID/A associations met with Secretary Arkoosh and Dep. Secretary Kristin Ahrens to better understand the FY 2024–25 budget. The Secretary expressed gratitude for our collective advocacy over the past year. She relayed that this budget was a hard-fought battle. Although DHS did not receive the proposed amount, $354 million in new funding is a significant investment. The administration is committed to eliminating the emergency waiting list and made it clear Performance-Based Contracting is moving forward. The administration is committed to building a stronger system and wants to continue to work on these priorities together.

Here are a few technical updates regarding the FY 2024–25 budget:

1. New rates are anticipated to be published on August 31^st, to be effective October 1^st, and retroactive to July 1^st
   1. Non-residential rates expected to go up by 8% across the board
   2. Residential rates expected to go up by 6% across the board
   3. Providers are encouraged to bill at the current rates and expect a gross adjustment sometime after October 1^st
2. Changes to PBC are anticipated to be published on July 26^th as follows:
   1. The rate add-on for clinically enhanced providers is expected to be 5%
   2. The rate add-on for select providers is expected to be 3%
   3. Pay for performance is expected to receive more funding, in order to open more categories for select and clinically enhanced providers

For any questions, contact Richard Edley or Carol Ferenz.