Louisiana will raise disability service rates 3 percent, well short of its own study

Louisiana will increase Medicaid reimbursement for certain home- and community-based disability services by about 3 percent on October 1. The Center Square reported that the Louisiana Department of Health told providers, participants, and families in an August 20 memo. Lawmakers funded the change in the 2026 state budget.

The increase covers services run by the Office of Intellectual and Developmental Disability Supports. The department is also lifting the direct support professional wage floor by 3 percent, from $9 an hour to $9.27.

A state-commissioned rate study modeled a much larger gap. For developmental-disability programs, estimated payments would rise from about $710.4 million to $813.7 million if rates matched the model, a difference of roughly $103.4 million. The study’s wage assumption was a minimum of $11.48 an hour.

The 3 percent option followed a July 17 meeting and survey. The department said most respondents favored spreading the available money as an across-the-board increase. Updated fee schedules are due before the rates take effect.