First Medicaid provider rate increase takes effect; second set for July 1

Two smiling women. One has her arm around the other.

Developmental disability service providers began billing at significantly higher Medicaid reimbursement rates on Jan. 1 and will see another increase on July 1.

The Ohio Department of Developmental Disabilities (DODD) said it expects the new rates to lead to higher wages for direct-support professionals throughout the state. Once the reimbursement rates are fully implemented, DODD said, the required provider data reporting should show that the average wage for DSPs in Ohio is at least $18 per hour.

That hourly wage, however, is not mandatory. It is ultimately up to employers to decide how they use the higher rates, which will reflect a 38 percent increase after the second jump takes effect. “DODD strongly encourages providers to be transparent and communicate with DSPs about how increases are being used. DSPs should talk to their employers to understand what the increased reimbursement rates mean for them,” the state said.

Ohio’s current biennial budget invests an historic $1.3 billion into provider rates to boost DSP wages and help stabilize the workforce. County boards also are providing funds for the initiative; the Franklin County Board of Developmental Disabilities expects to allocate about $9.7 million annually for the increase.

Click here to read more from DODD about what the rate increases mean for DSPs.

Click here to read more from DODD about what the rates mean for providers.