ResCoalition New Year Update

[HCDD. Inc.]

[HCDD. Inc.]

With the budget signed and July 1 looming as the beginning of a new year, many things are afoot. 

 

THE BUDGET

 

Let's start with the fiscal side of it.  I am sure that many of you have heard that the budget didn't include any of our increases again.  Many people were banking on the 10% of the Lanterman Coalition.  As members of the Lanterman Coalition we fought hard for the increase.  At the end of the day, the Governor line itemed out increases to the DD system.  He is instead initiating a "special session" just to discuss issues within the DD system.  We will participate in those discussion.

 

Well even though the desired 10% was not included. . . the Budget DID include increases.  Two in fact that will directly impact you, the Residential Care Provider.   

 

·         The first increase, effective July 1, 2015 is for the sick leave requirement - discussed later.   This increase ranges from $27 dollars per bed in a level  2 to $50 dollars a bed in a 4I.  

               (Example level 4I 6 bed  = $50 per bed x 6 = $300 / month X 12=  $1800 annual increase)

·         A second increase that will be effective January 1, 2016 is a 2nd minimum wage increase.  As we did for this past budget, we were able to negotiate about another  6%. 

            (Example level 4I 6 bed = $300 per consumer X 6 = $1800 / month X 12 = $21,600 annual increase)                   

So while we did not get the 10%, there is still the 6% that will begin in January.   So in summary,  ResCoalition is proud to report that in the past 12 months we have been able to get you, ARM rate providers, almost 13% in increased rates. 

( For a level 4I the increases equal approximately $45,000 to assist toward offsetting the additional cost)

RESCO INVITED TO PARTICIPATE IN KEY LEGISLATIVE COMMITTEES

In addition to our hard work on fiscal (budget) issues, we are involved in two key Committees. 

1.      The first, Governor Brown's DS taskforce committee has been tasked with reassessing the community services system and looking at ways to make it viable and sustainable . . . including rates.

2.      The second, is the DDS CMS committee.  This entity has been created to look at how to apply the new federal mandates on the existing community services system.

LEGISLATION IMPACT     

 

ResCoalition continues to be aggressive on the legislative side.  We are proud of the fact that our Bill SB490 -Regional Center Audits - has now passed through 5 different committees/votes and is two away from the governor's desk.  This bill would lift the fiscal audit requirement from vendors with less than $2 million dollars in revenue annually.  It also exempts social security money from the revenue calculation and would require that only Regional Center money be audited.  

 

In addition we have taken stands on several bills and are currently working on SB3 which is another minimum wage bill, with oppose unless amended - to ensure that money is given attached to fund.  We are also watching AB918.  This bill will require that all restraints be posted online for each vendor. 

SICK LEAVE EFFECTIVE JULY 1, 2015

 

We want to remind all Resco members that, effective July 1, you are required to provide sick leave equivalent to 24 hours per year.  There are two ways you can do it, Resco has templates that you need to have employees sign for both options.  These are posted on our website for your use if you are current.   As discussed above, we were able to get a funding bump to cover this increase cost. 

NEW CMS REGULATIONS

Virtually all of you are Medicaid waiver facilities, this means your residents get federal matching funds.  It is important to know that the feds, in what is called CMS regulations, are changing the requirements for ALL services in the state.  These new CMS regulations have come down from the Feds and the state MUST comply.   This means all vendors in the state must be in full compliance by 2019. 

DDS has put together a CMS taskforce to look at how to implement and educate vendors.  Resco is a member of this group and done an initial analysis of existing regulations vs. what the feds want.  Within the next 2 weeks we will send a follow-up email detailing the new CMS regulations.  Be advised, despite a lot of talk to the contrary, there is no requirement that facilities be 4 bed or less.  

4 BEDS VS 6 BEDS

Speaking of 4 beds vs. 6 beds.  Attached you will find ResColaitions detailed analysis of the 4 bed vs. 6 bed issue.  This is causing quite a bit of discussion in Sacramento because the analysis shows 4 bed homes have higher indirect costs but provide less services as a function of Title 17.  Keep in mind we are not seeking to stop or get rid of 4 beds.  the goal of this education project is to help the legislature to understand the need to create a funding and staffing differential for 4 bed programs.   Four beds are a good model of service but their funding under current ARM rates prohibits their sustainability.  If you are a 4 bed program and following ALL labor laws, you know what we mean.    

This 4 bed vs. 6 bed issue has been discussed significantly in the Developmental Services Taskforce, a panel created by the Governor's office.  Resco is one of only 4 community members added to the taskforce,  the goal is to look at current services and rates and seek to look at creating long term viability and stability within the system. 

MINIMUM WAGE

The minimum wage issue is cropping up in various areas - Oakland, San Jose, Los Angeles, ETC.  DDS does have the ability to increase your rate due to health and safety issues.  The inability to stay open because minimum wage costs are higher than your funding supports is a valid reason to get an increase.  Currently, each individual vendor has to make the request of their local RC and the RC must then ask DDS.  We are seeking to create one blanket request for each RC for all ARM rated facilities and have been in talks with several RC's. We would encourage you to speak to your RC about it and have them get on board.  

LABOR LAW

We know we're beginning to sound like a broken record but Federal DOL audits continue.  As long as you have the contracts in place and have been following our recommendations you will be fine.  A Resco member was just audited.  Ended up with only $1300.00 and this was only because staff were trading hours  but not putting it on their time sheets.  A Southern CA member turned in initial paperwork and the auditor was so impressed,  reduced the 3 year window to 6 months . . . no action resulted from the audit.  Remember, you MAY have been paying your staff incorrectly but efforts to change to a correct model will benefit you and reduce the impact significantly.  The vendor with the $1300.00, outcome listed above, had only changed about a year ago but the Feds still credited the change.