State Rates Advisory Committee: Various Rate Updates December 2005 State of Montana Helena, Montana Davis Deshaies, LLC

2 RATES DISCUSSION: Transportation Supported Employment Holiday Overtime

3 TRANSPORTATION RATES Approach & Status:

4 Transportation Rate Assumptions 1. Travel Zones 2. Shared Expenses 3. Mileage Rates

5 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%)

6 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

7 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

8 Next Steps: Transportation TaskResponsibilityTimeline 1. Step #1: Assign Consumers to Zones Region II / Case Managers / Providers January 10, Step #2: Balance Zone Assignments against existing Regional Budget Region IIJanuary 15, Step #3: Identify OutliersRegion IIJanuary 20, Step #4: Adjust Regional Budget and modify invoicing DDP Central Office; Davis Deshaies January 30, 2006

9 SUPPORTED EMPLOYMENT RATES: Approach & Status

10 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”

11 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.

12 Next Steps: Supported Employment TaskResponsibilityTimeline 1. Step #1: Determine Base Rate, Variable Rates, and Pricing Standards; define billable unit DDP, Providers, Davis Deshaies January 6, Step #2: Apply SE rates to current contracts and determine financial impact Regions, Providers, Davis Deshaies January 15, Step #3: Make final adjustments and revise invoicing protocols DDP & Davis Deshaies January 20, Step #4: Apply to Region II Pilot Providers DDP Central Office; Davis Deshaies January 30, 2006

13 HOLIDAY RATES: Approach & Status

14 Holiday Rate Assumptions 1. Ten Holidays 2. Applies to Residential Providers Only 3. Applies a special Holiday rate (1.5 times direct care salary)

15 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.

16 Next Steps: Holiday Rates TaskResponsibilityTimeline 1. Step #1: Providers in Region II will be reimbursed for State-recognized holidays through January 1, Region II DDP & Providers, Davis Deshaies January 10, Step #2: Providers will identify up to remaining four (4) holidays for overtime compensation Region II providers January 15, 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, Step #4: Providers will invoice according to their approved holiday schedule. Region II DDP & Providers; Davis Deshaies February 5, 2006