DDS Directives & Rate Reform Updates

Rate Reform

The next stage in the redesign and reform of rates for many services that support individuals with intellectual and developmental disabilities (I/DD) becomes effective January 1, 2025. 

PLEASE REVIEW THE BELOW DIRECTIVES AND ENCLOSURES FOR YOUR SERVICE CODES, AS THERE ARE NEW COMPONENTS FOR STAFFING, INCLUDING EDUCATION AND EXPERIENCE REQUIREMENTS. 

Any questions can be directed to rate.info@sdrc.org 

Rate Reform in California’s developmental services system means changing the way the state pays for services. The goal is to make sure that the payment system is fair, supports providing high-quality care, and that it helps people get the services they need. Payments are made by the Department of Developmental Services (DDS) through regional centers to all service providers. The payments are reimbursements for services provided to individuals with intellectual and developmental disabilities (I/DD) and families. All information regarding rate reform, including timelines, history, directives, trainings, rate models, reimbursement rates and meeting recordings can be found HERE or in the links below. 

4/1/25 Directive here

Extension of timeline for completion of rate reform implementation Service Acknowledgement Forms referenced in previous directives issued by the Department of Developmental Services (Department), from March 31 to May 30, 2025

11/19/2024

Rate Reform Implementation for Specialized Services Service codes 103, 115, 117

• Enclosure A

• Enclosure B

• Enclosure C

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11/19/2024

DIRECTIVE: Rate Reform Implementation for Early Start and Infant Development Service codes 116 and 805

• Enclosure A

• Enclosure B

• Enclosure C

1/10/25- 

• There is a statement in the 805 service code regarding Early Intervention possibly extending through age 5. The Early Start laws and regulations clearly state all ES services must end the day before the 3rd birthday. By law families must access the school district and insurance for any ongoing services after age 3. ES Service Coordinators help transition the families to the district at 2.6.  

  • • 17 CCR § 52000 (16) Early intervention services means those services provided under public supervision, designed to meet the developmental needs of each eligible infant or toddler and the needs of the family related to the infant's or toddler's development. The services include but are not limited to assistive technology device and service; audiology; family training; counseling and home visits; health services; medical services only for diagnostic or evaluation purposes; nursing services; nutrition services, occupational therapy; physical therapy; psychological services; service coordination; sign language and cued language services; social work services; special instruction; speech-language pathology services; transportation and related costs; and vision services. Early intervention services may include such services as respite and other family support services. The services are designed to meet the development needs of an infant or a toddler with a disability as defined in Government Code, Chapter 4, Eligibility § 95014(a)(1) and in § 52082(b)(3) for these regulations.

    • 17 CCR § 52020 An infant or toddler shall be eligible for early intervention services if he or she is between birth up to thirty-six months of age and meets one of the criteria specified in Section 52022 as determined by means of evaluation pursuant to Section 52082 of these regulations and needs early intervention services.

    • Government Code, Chapter 4, Eligibility § 95014(a)(1): (a) The term “eligible infant or toddler” for the purposes of this title means infants and toddlers from birth through two years of age, for whom a need for early intervention services, as specified in the federal Individuals with Disabilities Education Act (20 U.S.C. Sec. 1431 et seq.) and applicable regulations, is documented by means of assessment and evaluation as required in Sections 95016 and 95018 and who meet one of the following criteria:

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11/13/2024

Rate Reform Implementation for Adaptive Skills Training and Behavioral Services service codes 612, 620

• Enclosure A

• Enclosure B

Information related to the DDS Rate Study Implementation can be found here: https://www.dds.ca.gov/rc/vendor-provider/rate-study/

8/1 Update

Rate Reform- Steps in the Process

1.  Community services enters your transitional rates based on your workbooks.

   • This may be done at the same time or after step 2. 

2. Community services enters your new subcodes and rates based on what you signed for on the Rate reform service agreement form (SAF)

   • Once your new subcodes are in the system, this is what will be used for any new referrals.

   • You may see old rates and new rates in your SPP and on your invoices while at this stage. This is ok! old auths old rates, new auths new rates.

3. Business services will cancel all of your old authorizations.

   • You may notice that you no longer see auths in your SPP. This means you are at step 3. It may take several weeks to get the new auths in there.

4. Client services will enter new POSs for all the canceled auths. At this time you may be asked to provide staffing levels for behavior or infant ed services. 

5. Business services will process all POS requests. At this time the auths will reappear in your SPP and in your invoices.

6. Once all auths are cancelled, Community Services will remove all old subcodes

6/1 Update

We have made it past the May 30 deadlines for SAF signing and Provider Directory enrollment! Thank you for all of your patience, hard work and follow up to help us. We are continuing to process SAF forms. 

1. The transition process is a multi-departmental effort that takes precision and collaboration. We are processing these in batches and it will take some time. Community services needs to enter all of the new subcodes and rates for each vendor and each service code.  Then business services needs to cancel all existing authorizations. Client services will re-enter each POS request under the new subcodes and then business services will authorize them. You may notice that your authorizations all disappear from your portal. This means that business services has done their first step and you will see the authorizations reappear under the new subcodes and rates once they are processed. This may take 2-4 weeks If you notice any missing auths, please reach out to your resource coordinator to follow up. 

2. If you see your new subcodes in your portal, they are ready for use! There may be overlap with your old subcodes and new subcodes. All new referrals will be entered under the new subcodes, while your older authorizations may remain under the old subcodes until we transition them over.

3. Per the directives, SDRC has until 12/31/25 to fully implement rate reform. This includes the above process as well as retro pay if applicable to you

4. 116 providers can now bill up to 2 units for their assement rates if you are billing under the new subcodes. Please note, if you have not yet received your new subcodes or are still invoicing under some old subcodes, you can still only bill one unit per session. 

4/1 Update

This directive extends the timeline for completion of rate reform implementation Service Acknowledgement Forms referenced in previous directives issued by the Department of Developmental Services (Department), from March 31 to May 30, 2025.

Some highlights: 

• Service providers that do not sign the SAF will be considered noncompliant and subject to potential termination under California Code of Regulations Title 17 section 54370 (c). Given this, regional centers are strongly encouraged to work with providers and the Department to make sure the forms are accurate and available timely for consideration and review before the updated May 30, 2025 deadline.

• Service providers that do not submit the required information in the provider directory by May 30, 2025, will have their billing suspended beginning July 2025, until they submit this information and it is validated.

2/26 Update for 116 Providers

• As a part of rate reform, we need to transition all 116 services to a per hour rate. This means, assessments that are currently at a per session rate will be transitioning to a per hour rate. Now, the rate will need to align as well and we will need to take your QIP status into consideration. Therefore, the rate will visibly look lower however now you’ll be able to bill for at least 2 hours. 

• Service Coordinators will be instructed to enter the POS as 2 billing units. If you need more than 2 units/hours for this service, you will need to speak with your service coordinator. 

• We are still working through this process, therefore we do not have a hard timeline in which we will be making this transition. Some of the newer providers already are using this system, but this will be a change that all providers will see as your files move in to rate reform. You will continue to bill as usual until the rates have transitioned. 

2/5/25 Update

At this time, we are facing an unprecedented amount of questions and concerns from vendors and it is becoming a workload issue. It is also slowing down the process as each of these questions, phone calls, meetings, etc. takes time to respond to. We understand your concerns and we are trying to answer all questions in a timely manner. We are also working towards sending out Rate Reform Acknowledgement Forms in the order received. 

We are facing many hurdles as we move through rate reform. We are trying our hardest to keep everything organized and consistent in order to complete this change successfully. We are ensuring to attend weekly meetings with DDS in order to obtain the most up to date information and changes. 

Please read the following important information and updates regarding Rate Reform:

• Rate Reform Temps are sending out workbooks according to service code and are tracking everything. If you have not yet received the workbooks, do not panic! We have thousands of vendors and they are being sent out every day. Rate Reform Temps are not being advised to answer vendor specific questions, as this is not their expertise. Please do not email them directly asking for workbooks or more information. 

• Some vendors may receive a workbook in error (usual and customary vendors specifically). You can disregard the workbook if it does not apply to your rate structure. 

• Some service codes, such as Residential and FHA, will not be receiving a workbook. Instead, DDS is sending lists of vendors who can proceed with 100% of their rate. We are working through these lists for any in order to find any incorrect information. 

• We are bringing on two new Rate Reform Temps towards the end of February to assist with revendorizations and vendors who need additional service code vendorizations. 

• Many vendor workbooks do not include QIP information. SDRC cannot change this column even if vendor has emails confirming they are signed up for the Service Provider Directory. Please save the emails on your end and we will request them if needed.

• Vendors need to email providerdirectory@dds.ca.gov to work through issues related to the Service Provider Directory. SDRC cannot fix this, as this is at the DDS level. You can also check the status of your QIP here: Provider Directory : CA Department of Developmental Services.  

• Vendors in groups 1-3 can receive 100% of their rate even if their workbook reflects a No under the QIP column. 

• DDS is making revisions and updates to the workbooks on a weekly basis and we are ensuring to send the most up to date workbooks. 

• This is a multidepartment process that involves MANY moving parts. We cannot skip ahead as me may forget to track important critical steps. Reform needs to go through ALL processes and channels, including Community Services, Client Services, and Business Services. In order for a bicycle to move forward, all parts need to be working in sync and correctly. 

• SDRC has until 12/31/2025 to complete this transition. Signatures/Agreements are needed by 3/31/2025.

• Vendors should continue to bill as normal until you receive word about next steps. You will receive a retroactive payment to Jan 1st once this process can be completed. 

• Vendors should use resources developed such as the DDS website, the SDRC ES/ Bx Resource page, the SDRC Rates Resource Page, Coffee with Community Services, Vendor Roundtables, SDRC Rate Reform Office Hours, etc. in order to try to get their questions answered. An FAQ for our most commonly asked questions is below.

• We will have ALL 7/1/24 rate increases updated by 2/7/25. Once this process is complete, new subcodes can be entered into UFS so we can proceed with entering new rates.

• Once we enter in the new subcodes, we can begin issuing transitional rates. Transitional rates are meant to act as a rate increase buffer until the rate reform transition can be complete.

• We kindly ask that vendors remain patient during this time. We have never experienced Rate Reform before and we are learning as we go. This is the biggest help vendors can provide us during this time. 

We appreciate your attention to this matter and your patience with this process. Thank you!

Quality Incentive Programs

The QIP is designed to improve consumer outcomes, service provider performance, and the quality of services. Service providers who participate in QIP are eligible for incentive payments when their performance meets or exceeds quality measures developed by DDS with input from stakeholders. 

There are multiple QIP. based on identified areas of focus. A full description can be found HERE. There are 2 primary incentives that affect ES and Bx providers right now, which are the 2024 Early Intervention Quality Measure and the 2025 Provider Directory 

Early Intervention Quality Measure 

The Early Start QIP for 2024 encourages timely service start, providing a one time payment of either $100, $200, or $300 based on each new early start contract that is provided within 20, 15, or 10 days of scheduled authorization start in the 2024 calendar year. This has not been extended in to 2025. 

• As of January 2025, Quarter 1 payments (January- March 2024) have been payed out. Some qualifying payments may have been missed on the first list and will be distributed along with the Q2 payments. 

• As of April, 2025, Quarter 2 payments (April- June 2024) are in the process of being issued throughout April and May

• Q3 and Q4 distributions have not yet been received from DDS

For more information regarding Quality Incentive Program: Early Intervention Quality Measure including the enclosures, please follow this link https://www.dds.ca.gov/rc/vendor-provider/quality-incentive-program/: 

Provider Directory

There is a one time lump sum payment tied to registration and completion of the provider directory information by 11/29/2024. New providers and providers that missed the deadline will have future opportunities to register for the directory. For infotmation please follow the links. These payments have started to be distributed as of August 2025. 

• QIP Provider Directory Directive (Sept. 2024)

• Enclosure – Eligible Service Codes

Remote Services for CA Early Start will remain indefinitely!

https://www.dds.ca.gov/wp-content/uploads/2021/10/Trailer_Bill_Language_Affecting_Regional_Centers_July_2021.pdf

SDRC Policy regarding Early Start remote services:

• Service must be family/ caregiver requested. A provider cannot require remote sessions. A remote session can be used as a one time makeup session or ongoing if the family requests.

• All parties (provider and family) must be in the state of California, preferably within SDRC catchment areas. Remote services cannot be provided to or by anyone out of state.

• Service must be an actual session with caregiver and child present. It cannot be a homework assignment, email or brief check in.

• Ongoing remote services should be discussed with the Service Coordinator in order to appropriately document it in the IFSP.