State Rates Advisory Committee:

Various Rate Updates

December 2005

State of MontanaHelena, Montana

Davis Deshaies, LLC

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RATES DISCUSSION:

TransportationSupported EmploymentHoliday Overtime

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TRANSPORTATION RATES Approach & Status:

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Transportation Rate Assumptions

1. Travel Zones

2. Shared Expenses

3. Mileage Rates

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Transportation Rates Assumptions

Travel Zones: Each person is assigned into one of 3 zones based upon the amount of NON-DAY PROGRAM travel per YEAR

• Zone 1 = 8,580 miles (50% of population) • Zone 2 = 11,700 miles (30% of population)• Zone 3 = 13,520 miles (20 % of population)• Special Need = (10% of population);

assumes three Zone distribution (50%,

30%, or 20%)

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Economy of Scale Assumptions

Shared Expenses: travel costs are shared equally between people living together

• Community Homes rates assume 4 people per home

• Supported Living rates assume 3 people per home

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Mileage Rate Assumptions

Mileage Rate: mileage is priced at $0.35 per mile

Special Need: people needing wheelchair vans are priced at $0.45 per mile

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Next Steps: Transportation

Task Responsibility Timeline

1. Step #1: Assign Consumers to Zones

Region II / Case Managers / Providers

January 10, 2006

2. Step #2: Balance Zone Assignments against existing Regional Budget

Region II January 15, 2006

3. Step #3: Identify Outliers Region II January 20, 2006

4. Step #4: Adjust Regional Budget and modify invoicing

DDP Central Office; Davis Deshaies

January 30, 2006

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SUPPORTED EMPLOYMENT RATES:

Approach & Status

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Supported Employment Rate Assumptions

1. Base Rate covering fixed costs

2. Two tiers plus exception

3. All SE services covered in each tier

4. Change billable unit from “hour” to “contact”

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Supported Employment Business Rules

Individual Career Plan: Each consumer choosing SE will have a career plan as part of their PSP.

Base Rate / Fixed Cost: Each provider will be compensated a flat monthly rate to cover fixed costs.

Variable Rate: Each provider will be compensated at a variable rate based upon the amount of support needed by the consumer. There will be two variable rates with rate ranges.

Exceptional Rate: For people who are not eligible for Vocational Rehabilitation funding, a separate rate will be established.

Utilization Review: All career plans will be reviewed by Regions and rates will be time-limited. Renewal of rates will be contingent upon progress.

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Next Steps: Supported Employment

Task Responsibility Timeline

1. Step #1: Determine Base Rate, Variable Rates, and Pricing Standards; define billable unit

DDP, Providers, Davis Deshaies

January 6, 2006

2. Step #2: Apply SE rates to current contracts and determine financial impact

Regions, Providers, Davis Deshaies

January 15, 2006

3. Step #3: Make final adjustments and revise invoicing protocols

DDP & Davis Deshaies

January 20, 2006

4. Step #4: Apply to Region II Pilot Providers

DDP Central Office; Davis Deshaies

January 30, 2006

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HOLIDAY RATES:

Approach & Status

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Holiday Rate Assumptions

1. Ten Holidays

2. Applies to Residential Providers Only

3. Applies a special Holiday rate (1.5 times direct care salary)

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Holiday Rates Business Rules

Holiday Designation: Each residential provider will identify up to TEN (10) holidays in which it intends to remain open and provide services.

Notice to DDP: Each provider will provide written notice of their selected holidays to DDP at the beginning of the contract period.

Overtime compensation: Each provider will be reimbursed at a special Holiday overtime rate by DDP.

Audit compliance: Each provider will retain employee payroll documentation showing that staff received holiday overtime compensation. Only providers who paid direct care staff for holiday overtime will receive DDP reimbursement.

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Next Steps: Holiday Rates

Task Responsibility Timeline

1. Step #1: Providers in Region II will be reimbursed for State-recognized holidays through January 1, 2006.

Region II DDP & Providers, Davis Deshaies

January 10, 2006

2. Step #2: Providers will identify up to remaining four (4) holidays for overtime compensation

Region II providers

January 15, 2006

3. Step #3: DDP Region II will review and approve holiday coverage; invoicing instructions will be revised to reflect new holidays.

Region II DDP & Davis Deshaies

January 20, 2006

4. Step #4: Providers will invoice according to their approved holiday schedule.

Region II DDP & Providers; Davis Deshaies

February 5, 2006