As the Welfare and Institutions Code, Section 4519.8 requires, the Department of Developmental Services (DDS) submitted a service provider rate study to the Legislature in March 2019. The rate study addressed several areas, including but not limited to, evaluating alternative rate-setting methodologies, the number and types of service codes, and recommendations for simplifying and making service codes more reflective of the services provided. The rate study recommended using “rate models,” which identify cost factors and estimated costs for delivering various services and establish rates for services.

On September 19, 2024, DDS released a directive on the full implementation of the Rate Reform.  The letter provides some background regarding rate reform, highlights some of the steps that have occurred over the last few years, and previews some upcoming activities.

The final phase of Rate Reform is here and may require some quick action from our Service Provider Community. Rate Reform implementation is moving quickly as the Department of Developmental Services (DDS) plans to release a series of directives in the coming months. Directives will provide regional centers and providers with guidance on service descriptions, new components, and timelines.

Recently released DDS directives:

• NEW! 12/09/2024 – Rate Reform Implementation for Adult Day Services 
• NEW! 12/04/2024 – Rate Reform Implementation for Personal Assistance, Independent and Supported Living Services, and Mobility Training Services
• NEW! 11/25/2024 - Rate Reform Implementation for Employment Services (revised 11.27.24)
• 11/21/2024 - Rate Reform – Service Code Crosswalk
• 11/19/2024 – Rate Reform Implementation for Specialized Services
• 11/19/2024 – Rate Reform Implementation for Early Start and Infant Development
• 11/13/2024 – Rate Reform for Adaptive Skills Training and Behavioral Services
• 10/30/2024 – Rate Reform Implementation – Special Circumstances 

Additional Resources

Find the most up-to-date information on DDS’ Rate Reform webpage for all directives, Rate Models, FAQs, information on Quality Incentives, and more.

Review complete Rate Models and Rates for each service code for Regional Centers, including Harbor Regional Center on DDS’ Rate Reform Complete Rate Models webpage.

DDS holds meetings and trainings regularly regarding the implementation of the Rate Reform. To view upcoming meetings and to register, visit DDS’ Rate Reform Meeting Information webpage regularly.