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Kentucky MedicaidAll Plans · Administrative · ReimbursementMedium impact

1915(c) HCBS Waiver Rate Increase Guidance

Effective date
Jan 1, 2025
Identified
Jun 20, 2026

Summary

Kentucky's Department for Medicaid Services received CMS approval for rate-related amendments to all six 1915(c) Home and Community Based Services waiver programs, and the amended waiver applications take effect on January 1, 2025. The changes include Respite in the Michelle P. Waiver moving from $4,840 per plan of care year to 15-minute units with a maximum of 1,312 units per plan of care year, all Model II skilled services moving from hourly units to 15-minute units, and the Support Broker service becoming Case Management. Participant Directed Coordination is split into Case Management and Financial Management, which are billed separately on or after January 1, 2025, and the non-specialized respite rate for PDS increases to $5.92 per unit.

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What to do

Action · 11 steps
01Already effective 2025-01-01: Case managers must update the person-centered service plan (PCSP) in MWMA for Michelle P.
02Waiver participants receiving Respite.
03End-date the current Respite service line with an end date of 12/31/24, then add a new Respite service line with the units the participant needs and a start date of 1/1/25, using T1005 or 660 for traditional Respite or T1005 HI for PDS.
04Providers must update the PCSP in MWMA for Model II Waiver participants: end-date the current skilled services line with an end date of 12/31/24 and add a new line with a start date of 1/1/25 and the number of 15-minute units needed, using the same code.
05Case managers must update PCSPs in MWMA for ABI, ABI LTC and MPW participants using PDS: end-date the Support Broker (T2022 HI) service line with an end date of 12/31/24 and add a Case Management (T2022) line starting 1/1/25.
06Case managers must update PCSPs in MWMA for HCB participants using PDS: end-date the PDC (T2040 HI) and/or PDS Case Management (T1016 HI) line with an end date of 12/31/24 and add a Conflict Free Case Management (T1016 or 590) line starting 1/1/25.
07Financial Management is billed as one unit up to the maximum rate for dates of service on or after January 1, 2025, using T2040 HI for ABI, ABI LTC, MPW and SCL and T2040 for HCB, with no PCSP change and no prior authorization.
08Specialized and Non-Specialized Respite in HCB is limited to 42 units per day alone or in combination, and no PCSP update is needed for that change.
09A full person-centered team meeting is not required for these changes.
10If a participant changes a PDS employee's pay rate, the documentation needed is a case note of the discussion and a signed contract between the participant and the PDS employee, since pay rates cannot be changed without a signed contract in place.
11If the participant does not pay the PDS employee the maximum rate, the financial management agency adjusts the rate in the state-sponsored electronic visit verification system.

Codes mentioned

T1005T1016T2022T2040H0039S5125

Original notice

1915(c) HCBS Waiver Rate Increase Guidance
chfs.ky.gov · Always check the source before changing claims.
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