ACTION NEEDED! – HCBS Rate Cuts

The Iowa Association of Community Providers is lobbying the legislature to rescind the 2.5% HCBS rate cut that DHS included in their plan to comply with the Governor’s 10% across-the-board cut for FY 2009. Their logic is that the cost savings to the state is minimal while the cut to the providers is substantial. What they don’t include in their discussion with legislators is the amount of savings accruing to the counties who pay the non-federal share of waiver services for most adults with intellectual disabilities.

At the same time, they are suggesting that county MH/DD budgets are capable of absorbing the 10% cut while maintaining provider rates due to the enhanced federal participation in Medicaid under the federal stimulus plan. What they fail to explain is that the 10% cut to allowed growth and property tax relief offset the enhanced match.  In addition, the enhanced match represents one-time funding and can’t be depended on in the future. Counties are concerned about absorbing this increase into their budgets and then having the rug pulled out from under them when the federal funding goes away.  Both counties and Iowa Medicaid face the same problem, which means that the Iowa Legislature will have a significant gap in funding when that day comes.

Please contact your legislator and explain the significance of the 2.5% HCBS rate cut to your county’s ongoing funding of MH/DD services. Without any adjustment in provider rates, all of the breathing room provided by the federal government will be eaten up by state cuts.  Click here for legislative contact information.