The Pennsylvania Department of Drug and Alcohol Programs (DDAP) notified single county authorities (SCA) that it will continue to distribute federal COVID-related grant funding to SCAs while the US District Court considers a 23-state lawsuit seeking an emergency temporary restraining order against US Health and Human Services Secretary Robert F. Kennedy Jr. for abruptly terminating COVID-grant funds that were appropriated for use for states until September 30, 2025. Those grant funds include a supplemental to the Substance Use Disorder Block Grant. The lawsuit was filed on April 1.
Though not confirmed, media reports suggest the termination of grants could cost the Pennsylvania Department of Health $301 million, along with an additional $28 million or more hit against DDAP.
DDAP had been using these grant funds to expand testing and provide resources for COVID; support providers and help meet local needs during the pandemic; and expand the substance use disorder prevention, intervention, treatment, and recovery support services continuum, including various evidence-based services and supports for individuals, families, and communities.
Governor Shapiro and Pennsylvania are listed along with 22 other plaintiffs in a lawsuit filed in US District Court in Rhode Island, requesting an emergency temporary restraining order against US Health and Human Services (HHS) Secretary Robert F. Kennedy Jr. for abruptly terminating COVID-grant funds, including a supplemental to the Substance Use Disorder Block Grant, that were appropriated for use for states until September 30, 2025.
Though not confirmed, media reports suggest the termination of grants could cost the Pennsylvania Department of Health $301 million, along with an additional $28 million or more hit against the Pennsylvania Department of Drug and Alcohol Programs (DDAP).
DDAP had been using these grant funds to expand testing and provide resources for COVID; support providers and help meet local needs during the pandemic; and expand the substance use disorder prevention, intervention, treatment, and recovery support services continuum, including various evidence-based services and supports for individuals, families, and communities.
DDAP is examining its options to maintain the full array of services offered by single county authorities and their providers to ensure Pennsylvanians continue to receive the lifesaving supports they need.
The factual allegations and legal background in the lawsuit state that during the COVID-19 pandemic, Congress appropriated substantial funds to strengthen public health programs that were not tied to the duration of the public health emergency. HHS and Congress continued to make these public health funds available after the end of the pandemic.
On Monday, March 24, with no advance notice, HHS abruptly terminated $11 billion in grants and cooperation agreements funded by appropriations from COVID-related laws. States were notified through letters from the Substance Abuse and Mental Health Administration (SAMHSA). The letters indicated the grants were issued for a limited purpose: to ameliorate the effects of the pandemic. The end of the pandemic provides cause to terminate COVID-related grants. Now that the pandemic is over, the grants are no longer necessary.
The lawsuit goes on to state the terminations have caused and will continue to cause irreparable harm and asks the court to vacate and set aside the termination of the funding and any other further actions taken by US HHS to implement or enforce them, among other requests.
HARRISBURG, PA — A bipartisan group of Pennsylvania lawmakers joined members of the Rehabilitation and Community Providers Association (RCPA), the Commonwealth’s largest health and human services trade association, at a press conference at the state Capitol in support of vital disability and human service programs. These programs serve millions of Pennsylvanians annually and play a transformative role in their lives.
At the March 26 press conference, RCPA and lawmakers pushed for continued funding and improved payment models, including Medicaid capitation, as well as decreasing administrative burden in the safety net system, as part of any final 2025/26 budget adopted by the General Assembly. These initiatives will help improve services and make the system work better for everyone. They also highlighted the need to invest in the workforce, ensuring strong support for licensed clinicians, direct support professionals, counselors, case managers and support/service coordinators, and peers.
Richard S. Edley, PhD, President and CEO of RCPA, spoke on behalf of members and those who rely on health and human services. Fady Sahhar, MBA, PhD, RCPA Director of Physical Disabilities & Aging, also communicated the need for Medicaid preservation and continued funding.
Richard S. Edley, PhD, President & CEO | Fady Sahhar, MBA, PhD, Director of PD&A |
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RCPA members also raised their voices to stress the importance of not only maintaining but improving the systems in place. Speakers included Melva Fair, an RCPA Board Member and CEO of Community Living and Support Services (CLASS), and Annie Smith, Director of Early Intervention at RCPA member Strawberry Fields. Also in attendance were RCPA Board Members Susan Coyle of Chartiers Center and Gretchen Kelly of PLEA.
Melva Fair | Annie Smith | Susan Coyle and Gretchen Kelly |
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Representatives from both sides of the aisle in the House and Senate spoke in agreement with RCPA’s message, voicing continued support for vital services in Pennsylvania.
Representative Doyle Heffley | Representative Joseph Hohenstein | Senator Tim Kearney |
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Last but not least, RCPA thanks everyone who attended this year’s Capitol Day. Your support and presence made this year one of our most successful press conferences to date!
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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.