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Thursday Apr 27
Proposed Compromise Solution to TCM Rate Cuts Home Office

Spectrum Generations' COO, Kristin Overton to Senator Brakey, Representative Hymanson, the members of the Joint Committee on Health & Human Services, and Deputy Commissioner Porteus regarding proposed cuts to Targeted Case Management. .

Hello Senator Brakey, Representative Hymanson, and members of the Joint Committee on Health & Human Services and Deputy Commissioner Porteous,

Spectrum Generations attended the presentation by Burns & Associates Tuesday regarding the proposed rates on a number of services, including Targeted Case Management in Section 13.  On several occasions we heard the committee ask for a recommendation regarding how to balance the cuts versus the increases without causing harm to current services; enabling capacity to remain in the community and quality TCM services available to consumers.  I'd like to propose a solution, taking into account the 10% stop-loss which was recommended by the Department. 

Solution: DHHS stated in their testimony that they would be reviewing rates annually; adjusting them as necessary so that the current unbalance is not experienced again. Our suggestion is not to cut the current TCM rate but have a rate freeze placed on it for the next 4 years.

Justification: The average rate of inflation is approximately 2%-3% per annum; freezing the rate at $21.52 for 4 years (through the end of 2022) would allow inflation to serve as the balancing mechanism, not a rate cut. The rate would slowly come into balance with the new model by the end of freeze period.  After 2022, the model's suggested annual or bi-annual calculation would then apply to TCM as well.  This compromise solves the concern that a rate cut would negatively impact services, threatening the ability for current providers to maintain the level of quality services to those individuals who need it most, including  those who are being released from the State. It should also meet the DHHS needs to get all service rates in balance.

I believe this would be a strong compromise which would promote a consistent rate model while bringing the rate into alignment with the model in a manner which would promote continued availability of services for consumers receiving TCM services.

Thank you for taking the time to consider this proposal.  As always, I am available for further discussion of questions at your convenience. 

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