State Lawmaker Highlights Bill That Would Fund Social Services During a Budget Impasse
Funding
DHS Presents Rural Health Transformation Plan Implementation Overview
Yesterday, March 31, 2026, the Department of Human Services (DHS) held a “kickoff” webinar to discuss the Rural Health Transformation Plan (RHTP). The slides have not been released; however, RCPA will share the PowerPoint with members once they are available.
The webinar did not provide definitive next steps in terms of which category of Request for Proposal (RFP) would be released and when. RFPs will be periodically rolled out, and DHS indicated that the first RFP release would be in the next two weeks. The Department also shared the broad categories of project areas for consideration, stating that all RFP responses should closely tie back to their approved CMS plan.
DHS touched on the fact that RHTP funding and compliance will be achieved through continual cooperative agreements with CMS. Below is a broader timeline highlighting certain reporting and funding dates, as well as broader categorical areas the state is pursuing.
- End of First Reporting Period – July 31, 2026
- First Annual Report Due to CMS – August 31, 2026
- Obligation of Year 1 Funding – October 30, 2026
- Year 2 Funding – October 31, 2026
- Quarterly Reports Due to CMS – November 29, 2026; March 1, 2027, May 30, 2027
- Spending Deadline for Year 1 – September 30, 2027
- By March 31, 2028, CMS will begin determining the amount of unused funds from the prior period to redistribute them to other states.
Year 1 Funding Mechanisms will include:
- Expansion of existing programs;
- Program payments;
- Intergovernmental agreements; and
- Grant agreements.
If your organization has an interest in these RFPs, RCPA will provide updates as appropriate, but we also encourage you to sign up directly for the DHS listserv info. Direct RHTP inquiries can be sent here.
If you have further questions, please contact your RCPA Policy Director.
RCPA Hosts Annual Capitol Day Event, Advocates for Health and Human Services
RCPA was honored to host our annual Capitol Day today, March 25, 2026, inside the Main Rotunda. This advocacy event and rally addressed Governor Shapiro’s 2026/27 budget and highlighted key administrative priorities for the year, including implementing rate increases, reducing administrative burden, and monitoring changes from federal legislation.
Richard Edley, President and CEO of RCPA, addressed key points from RCPA’s 2026 legislative and administrative priorities, while RCPA members attended to advocate for themselves, their loved ones, and those they serve. It was a great opportunity for individuals within the community to meet face-to-face with their legislators and discuss openly the concerns within health and human services that their families, providers, and organizations are facing.
Additional speakers at the rally included:
Carl Clark, President and CEO, Devereux Advanced Behavioral Health
[Pictured Left]
Representative Eric Nelson
[Pictured Right]
Representative Dr. Arvind Venkat
[Pictured Left]
Representative Ann Flood
[Pictured Right]
Dr. Kyle Kopko, Executive Director for the County Commissioners Association of Pennsylvania (CCAP)
[Pictured Left]
Senator Patty Kim
[Pictured Right]
RCPA thanks everyone who attended, the legislators who spoke and met with our members, and those who serve our state. We also thank the media outlets who attended, giving more exposure to the issues we face. We will always strive to support you and your communities!
MHSN Coalition Urges General Assembly for Funding
The Mental Health Safety Net (MHSN) Coalition is a group of stakeholders participating in a joint advocacy effort to protect and preserve our mental health service delivery system. The Coalition’s first advocacy bulletin discusses the critical areas of funding for the FY 2026/27 budget, including community mental health, school-based services, crisis intervention services, Behavioral HealthChoices programs, and impacts associated with the implementation of H.R. 1.
The full letter can be read here.
RCPA invites all members, non-members, and systems-wide behavioral health stakeholders to participate in the Mental Health Safety Net Coalition meetings that will be occurring throughout the budget season. These meetings will serve to update the group on strategy, activities, and engagement opportunities.
Also note that the Mental Health Safety Net Coalition will also be participating in the RCPA Capitol Day on Wednesday March 25, 2026, with the event starting at 10:00 am in the Capitol Rotunda in Harrisburg.
Please contact Emma Sharp with any questions or if you would like to join the Coalition.
RCPA Publishes White Paper Detailing School-Based Mental Health Blueprint
OCDEL Announces Coordinated Mass Rate Adjustment for Processed and Paid Early Intervention Claims
The 2025/26 Budget signed by Governor Josh Shapiro included an additional $13.2 million in state funding for Early Intervention services, with $10 million of this funding specifically targeting provider rates. Last month, the Office of Child Development and Early Learning (OCDEL) released Announcement EI 26-03 and the 2025/26 Fee Schedule, which included a 7% rate increase for Early Intervention services, with some exceptions.
This week, OCDEL announced next steps for a coordinated mass adjustment for processed and paid Early Intervention claims for services delivered in Fiscal Year 2025/2026. The adjustment process will begin the week of March 16, 2026; OCDEL did not give a timeline for completion.
The notice reads:
The Office of Child Development & Early Learning is preparing to perform a Mass Claims Adjustment for all PAID CLAIMS of Early Intervention services that contain a date of service between 7/1/25 – 3/8/26 and were filed on or before 3/8/26. The adjustment process will begin the week of 3/16/26. Due to the high volume of claims, they will be processed in batches. OCDEL is committed to providing updates on the progress of the mass adjustment throughout the week.
Any providers with paid claims that contain a date of service between 7/1/25 – 3/8/26 and were filed on or before 3/8/26 do not need to process their own claims adjustments. When the Mass Claims Adjustment is completed, providers will receive Payment Files and RAs (as applicable) displaying a new ICN beginning with 52. A uniform “billed amount” is being applied to this special Mass Adjustment of $1,000. All claims will correctly “cut-back” to the new Fiscal Year 2025-2026 rates.
Providers are responsible for the following:
- Using the newly published Fiscal Year 2025-2026 Fee Schedule — File NEW claims on or after 3/9/26 that contain a date of service on or after 7/1/25.
- Using the newly published Fiscal Year 2025-2026 Fee Schedule — Adjust claims filed on or after 3/9/26 that contain a date of service on or after 7/1/25 if the OLD fee schedule was used
While it is not recommended that providers submit their own Claims Adjustments for PAID CLAIMS of Early Intervention services that contain a date of service between 7/1/25–3/8/26 and were filed on or before 3/8/26, this will not impact the OCDEL initiated Mass Claims Adjustment.
For OCDEL initiated Mass Claims Adjustments, denied claims will be reported directly from our MMIS provider to OCDEL. In the unlikely event of a Mass Claims Adjustment denial, an OCDEL team member will reach out to the County in which your claims denied to coordinate corrections.
OCDEL would like to remind providers of the timely filling of all claims.
Timely Filing
The regulation at 55 Pa. Cde § 1101.68 (relating to invoicing for services) establishes requirements for submitting claims for services rendered. Early Intervention evaluations, IFSP services and Service Coordination claims are all required to follow this regulation.
There are only a few exceptions that are permitted which are related to PELICAN-EI record issues when there is a change of the child’s MCI or a record change for an adoption. OCDEL is not permitted to allow payment for claims submitted beyond the 180-day regulatory timelines for reasons including but not limited to provider billing errors, billing software issues or personnel vacancies/absences.
Any claims filed after the 180-day filing limit will result in a suspended status. When this happens, an email must be sent immediately to [email protected] with the ICN for the suspended claim and a description for the system reason. If an email regarding the suspended claim(s) is not received, the claim will be automatically denied.
Please forward this message to your contracted providers and direct any questions to your assigned EI Advisor.
OCDEL would like to remind providers of the opportunity to receive claims processing training Gainwell Technologies.
Gainwell Technologies offers PROMISe™ enrollment and billing training for Early Intervention providers. Accessing these training courses is a good opportunity for all Early Intervention providers to be supported in implementing accurate enrollment and billing practices.
PROMISe™ Provider Education & Training:
Webinar recordings are available on the website related to:
- How to Submit 180 Day Electronic Submissions and ACN Electronic Attachments
- How to Submit Revalidations, Reactivations, and Change Request Applications
Provider Portal Training on the topics listed below are also offered on request. Training is conducted via a virtual room (VR) and can be requested via email.
Providers should please include the following information when making a request: 13-digit Provider Number, Provider name, Contact name and phone number:
- Review of PROMISe™ Portal including registration
- Eligibility Verification
- Claim completion review (new, adjustments and voids)
- Claim Inquiry Search
- Enrolled Provider Search
- ERA and EFT Enrollment
- Review of Remittance Advice Statement
- Enrollment Information
- Review of DHS Website including fee schedule, MA regulation, MA Bulletins and Provider Quick Tips
Questions should be directed to the County in which services are contracted.
Visit here for more information on Claims Processing Steps. Contact Cindi Hobbes if you have any questions.
DHS House Budget Hearing Summary and RCPA Divisional Highlights
DHS Releases 2026/27 Blue Book; RCPA Shares Divisional Analysis
RCPA Shares DHS Secretary Arkoosh Budget Presentation Overview
On Friday, February 6, Department of Human Services (DHS) Secretary Val Arkoosh presented an overview of Governor Shapiro’s proposed Fiscal Year (FY) 2026/27 budget and detailed the projected spending across DHS, which totals $21.94 billion in state funding. The Secretary highlighted that all three Medicaid managed care programs, as well as waiver programs for people with intellectual disabilities and autism, are receiving increases, largely driven by patient needs and costs associated with delivering care. The proposed FY 2026/27 budget includes $39.7 billion in federal funding as well as $5.6 billion from augmentations and additional programs, such as lottery and tobacco funds, making the total DHS funding $67.2 billion.
The Secretary expressed how the proposed budget reflects the direct impacts of HR 1, with significant federal funding at risk. The distribution for the 2026/27 budget is based upon the current structure of Medicaid and other federally funded programs, but the Secretary noted that beginning in 2028, changes in Medicaid financing rules will remove $20 billion from Pennsylvania’s Medicaid program over the following decade.
Budget Highlights and Investments
- Investments in Health:
- Food is Medicine: $900,000 (federalizes to $2.3 million) in state funds to launch a pilot program that will provide nutritionally appropriate food to improve quality of life and health outcomes while lowering overall health care costs for Medicaid recipients with significant health care needs.
- Housing Stability: $1 million in state funds (federalizes to $2.5 million) to launch a pilot that will connect people experiencing homelessness to stable housing and services that improve health and care management.
- Reentry Supports: $900,000 in state funds (federalizes to $2.7 million) to provide pre-release coverage (up to 90 days prior to release from a State Correctional Institution) for substance use care and intensive case management.
- Continuing ODP Multi-Year Growth Strategy: Building upon Shapiro’s 2024 multi-year strategy to expand access to home and community-based services and effectively end the emergency waiting list of adults with intellectual disabilities with autism, the proposed budget allots $30 million in state funds, which federalizes to $66.2 million. This will allow for 850 more people to be served in the Community Living Waiver and 400 more people to be served in the Consolidated Waiver.
- Supporting 988 Call Centers and Crisis Services: The proposed budget includes a $10 million investment in the crisis response workforce to help 988 call centers, as well as $5 million in state funds to continue prior year commitments for emergency behavioral walk-in centers.
- Sustaining Early Intervention Rate Increase: The Secretary stated that the EI line item in the executive budget reflects the changing state cost to run the program and not an anticipated cut in funding. The release of the DHS Blue Book will have more information about the total funding with federal match. DHS intends to keep the new, updated rates from the 2025/26 budget, and revised rates will be released soon.
- County Base Mental Health Services Funding: RCPA has confirmed that there will be no allocation increase for county base funding. While previous budgets had included $20 million for county base mental health funding, it was not included in the 2025/26 budget or the proposed 2026/27 budget.
Due to technical difficulties, DHS was unable to record the webinar, but the presentation slides and transcript can both be viewed.
Please contact your RCPA Policy Director with any questions or concerns.
Reminder for Mental Health Safety Net Coalition Meeting on February 13
RCPA will reengage with all members, non-members, and systems-wide behavioral health stakeholders to participate in the Mental Health Safety Net Coalition. The Coalition is focused on developing strategies, activities, and engagement opportunities to support behavioral health funding in the Commonwealth.
The Coalition will have its first meeting on Friday, February 13, 2026, from 12:00 pm – 1:00 pm. This meeting will give the group an opportunity to review last year’s budget, Governor Shapiro’s proposed budget, and initial strategies for the Fiscal Year (FY) 2026/27. It will also give us an opportunity to develop questions for legislators for the DHS budget hearings in late February and early March. Register for the meeting by contacting Emma Sharp, RCPA Policy Associate.
As the group continues to meet, we will develop our overall advocacy blueprint to ensure the communication of our message and stakeholder engagement is focused on protecting and preserving our mental health service delivery system.
The meetings will be held via Microsoft Teams; information will be sent to those interested in the Coalition. RCPA invites all to participate. If you would like to join the Coalition or have any questions, please contact Emma Sharp.
