DSP Rate Increase and FS Waiver Cap Increase Update

The Centers for Medicare and Medicaid Services have approved Indiana’s request to increase the budget cap for the Family Supports (FS) Medicaid Waiver and their request to  implement rate increases for the FS waiver and Community Integration and Habilitation (CIH) waiver. The rate increases will allow providers to increase wages for DSPs providing FS and CIH waiver services.

Effective July 1, 2021, the following changes are approved.

  • FS waiver budget cap increase – To mitigate any potential negative impact on individuals and families that result from the rate increases, the annual cap for the FS waiver will be increased from $17,300 to $19,614 for individuals receiving FS waiver services.
  • FS & CIH waiver rate increases – As approved in Indiana’s biennial budget to address the shortage of qualified direct support professionals (DSPs), the Bureau of Developmental Disability Services (BDDS) will provide a 14% rate increase on the currently approved rate for the following services:
    • Adult day services – Level 1, 2 and 3
    • Prevocational services
    • Residential habilitation and support (hourly) (CIH waiver only)
    • Residential habilitation and support (daily) (CIH waiver only)
    • Respite
    • Extended services
    • Day habilitation – Individual and Group (Small, Medium, and Large)
    • Workplace assistance
    • Transportation services – Level 1, 2 and 3
    • Participant assistance and care (FS waiver only)
    • Facility based support

All authorized providers of these specific services are required to provide written and electronic notification of their plan to increase wages and benefits to their eligible DSPs. In addition, they must share this plan with all DSPs they employ who provide the support services listed above and are paid on an hourly basis. The plan must be submitted to BDDS no later than September 1, 2021.

BDDS is in the process of updating an FAQ document to offer additional guidance and clarifications for providers on the rate implementation requirements.