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Notice of Provider Funding for Compliance with HCBS Regulations

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Provider Funding for Compliance with Home and Community Based Services (HCBS) Regulations

In January 2014, the federal Centers for Medicare and Medicaid Services (CMS) announced some changes to their rules. CMS is the federal agency that must approve of the Medicaid waiver program that provides home and community based services (HCBS) to people with developmental disabilities in California. CMS pays for approximately half of the cost of services provided in these waiver programs. To keep receiving these federal funds, California has to follow their rules.

The new rule is referred to as the HCBS settings rule or the CMS Final Rule. The changes in the new rule impact some of the services funded by the regional center. The new rule requires programs to provide people with disabilities choice, full access to the benefits of community living and offer services and supports in settings that are integrated in the community. The rules apply to all residential and non-residential settings. All HCBS services must meet the requirements in the settings rule. Changes must begin to be made now to be in full compliance by March 2019.

In recognition that some service providers may need to make changes to their services, the 2016 Budget Act includes an allocation of $15 million to fund changes that will be necessary for providers to come into full compliance with the HCBS rules by March 2019. The Department of Developmental Services (DDS) has established a process for service providers to apply for funding in order to make changes to be in compliance with the new rule. Proposals must be submitted to the regional center by October 31, 2016. The regional center will review and make recommendations, and then forward the proposals to DDS. Final approval will be made by DDS.

In order to provide you more information about the CMS Final Rule and the process to apply for compliance funding, SG/PRC will host a series of meetings on August 17, 2016. SG/PRC will be providing three meetings, by service category, to discuss the availability of these funds and the application process for vendors to potentially access the funds. These meetings are intended only for the owners, licensees and senior administration of the programs.


Click on the links below for more information regarding the compliance funding, the steps to access the funding including the required documentation.  

 Thank you for your participation.