SB81 Rate Increase Frequently Asked Questions

Effective January 1, 2020


What are the rate increase percentages and eligible service codes for the SB 81 rate increase and when will I know the new rates for my programs?

A:The percentage of rate increases and eligible service codes can be found on the SB81 Rate Increase page. The rate increase will be applied to rates in effect on December 31, 2019, less the amount of any one-time increase, such as bridge funding (see response to #5 below). The Department or regional centers will contact vendors to inform them of their rate increase amount and new rate.

Do I need to keep track of how the rate increases are spent?

A:The statute that mandated the SB 81 rate increase does not require vendors to report on how the rate increase was used.

Will service providers receive a rate letter from the Department or the regional center?

A:For vendors, such as community-based day programs and respite agencies with Department-set rates, the Department will issue vendor-specific letters to inform them of their rate increase amount and new rate. For vendored services with negotiated rates, the regional center will contact the vendor with this information. Rates set by statute or regulation, will be updated and posted here.

Does the rate increase apply to tailored day services?

A:If vendored under one of the specified service codes receiving the SB 81 rate increase, tailored day service provider rates can be increased, consistent with the tailored day service rate setting as defined in Welfare and Institutions Code, Section 4688.21.

How is the SB 81 rate increase going to be applied to those vendors who received the bridge funding rate increase?

A:The rate increases will be applied to rates in effect on December 31, 2019, less the amount of any one-time rate increases, such as bridge funding. Below is an example of how new rates, effective January 1, 2019, will be calculated. The example assumes an Adult Development Center service rate of $64.38 per day in effect on December 31, 2019, that includes $1.32 as a result of the 2.1 percent bridge funding rate increase and will be receiving an 8.2 percent SB81 rate increase.

  1. Remove the amount of bridge funding rate increase from the vendor’s rate in effect on December 31, 2019.
    $64.38 (Current Rate) – $1.32 (Bridge Funding Rate Increase Amount) = $63.06
  2. Using the rate without bridge funding from Step 1, apply the percentage increase set forth in the SB 81 rate increase schedule.
    $63.06 (Calculated Rate from Step 1) x 1.082 (SB81 Rate Increase %) = $68.23
  3. Add back the bridge funding amount to the new calculated rate in Step 2 that includes the SB 81 rate increase. Note that the bridge funding increase is only available until April 30, 2020, hence Step 3 no longer applies after this date.
    $68.23 (Calculated Rate from Step 2) + $1.32 (Bridge Funding Increase) = $69.55 (New Rate)

Will providers receiving SB 81 rate increases also be eligible to request the 2020 State minimum wage rate adjustment?

A:Yes, if applicable, providers receiving the SB81 rate increase can also request a rate adjustment for the State minimum wage.


Last modified: December 20, 2019