Rate Study Implementation

Pursuant to Welfare and Institutions Code Section 4519.8, the Department of Developmental Services (Department) submitted a rate study addressing the sustainability, quality, and transparency of community-based services for individuals with developmental disabilities to the Legislature in March 2019. Chapter 76, Statutes of 2021 (AB 136, Committee on Budget and Developmental Services) added Welfare and Institutions Code section 4519.10 specifying the timeline for implementation of the rate models proposed in the rate study. SB188 (Section 4519.10) accelerated the timeline for implementation of the rate models.

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Rate Implementation Timeline

  • Effective April 1, 2022, the department shall implement a rate increase for service providers that equals one-quarter of the difference between current rates and the fully-funded rate model for each provider.
  • Effective January 1, 2023, the department shall adjust rates to equal one-half of the difference between rates in effect March 31, 2022, and the fully-funded rate model for each provider, and additional funding shall be available for the quality incentive program described in subdivision (e).
  • Commencing July 1, 2024*, the department shall implement the fully-funded rate models using two payment components, a base rate equaling 90 percent of the rate model, and a quality incentive payment, equaling up to 10 percent of the rate model, to be implemented through the quality incentive program described in subdivision (e).

*The 2024-25 Governor’s Budget proposes to return full implementation of rate reform, including this next round of adjustments, to the original date of July 1, 2025, from the accelerated date of July 1, 2024. DDS is continuing to prepare administratively for the full implementation of rate reform, subject to the final 2024-25 budget agreement.

Rate Models and Rates

The rates and rate models to be effective July 1, 2024 below include updated cost components as of January 2024. Updated cost components as of February 2022 were used to calculate the rate adjustment effective April 1, 2022 and January 1, 2023.

Below are the complete rate models with detailed information on rates by service code and a summary of rates for each service code by regional center.

Rate Implementation Forms and Directions

Rates for Providers Serving Consumers from Multiple Regional Centers

Providers may have multiple rates for the same service when services are provided in multiple regional center catchment areas. The attachment here identifies which service codes use rates from the user or vendoring regional center.

Rate Review Process

Providers who believe there is an error in the rate calculation may submit the rate review form to their Regional Center no later than 60 days after receiving their rates.

Service Detail Collection Forms

If you have received a Service Detail Collection Form and have questions about how to complete it, please refer to the following instructions. Submit your completed worksheet for existing vendorizations to your Regional Center.


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Last modified: March 15, 2024