Amends existing law to revise provisions regarding provider payment.

This bill is brought to increase transparency for taxpayers and support appropriation reductions for Medicaid rates paid to residential habilitation providers. Medicaid pays more than $176.5 million in General Funds to help people with disabilities live independently with residential habilitation and other home and community-based services. The Governor’s Recommendation calls for the Legislature to pursue policy changes to support the Department of Health and Welfare in achieving budget reductions for Medicaid, including an option to reduce rates for residential habilitation. In 2022, the Legislature appropriated funds (FY 2023 DU-7 KW Settlement – Svc. Enhance.) to increase payment rates for these services to implement a new service array and budget tool associated with the KW lawsuit. These funds are no longer appropriate since a court order halted implementation of the new services and budget tool. To support ongoing accountability for taxpayer dollars and ensure the Legislature has needed information to effectuate its appropriation responsibilities, this bill requires the department to report to this body how those funds are used.