State Policy
Developmental Disability Providers Report Financial Crisis From State Agency Payment Delays
Developmental disability service providers report they are nearing financial insolvency due to payment delays and administrative dysfunction at state Medicaid agencies, following more than two years of erroneous disenrollments during unwinding. Providers cite slow agency responses, unresolved eligibility issues, and accumulating unpaid claims for HCBS and developmental disability services. The timeline spans the entire unwinding period from 2024 through present day. This threatens the stability of the DD service delivery system and access to long-term services and supports for one of Medicaid's most vulnerable populations.
Why it mattersProvider insolvency in the developmental disability sector would force beneficiaries into more costly institutional settings and create network adequacy failures for states and MCOs with LTSS contracts.