Pennsylvania lawmakers look at tying disability rates, and DSP pay, to inflation

The Pennsylvania House Human Services Committee took up direct service provider reimbursement on August 18. The bill in front of them, House Bill 1939, would build an annual inflation adjustment into Medicaid rates for intellectual-disability and autism home- and community-based services.

If money is appropriated, rates would rise each October 1 with the consumer price index, starting in 2026. When rates rise, providers would have to increase DSP wages by that same percentage by January 1, and could not pay below a wage floor the department would publish. Fines for missing the wage rule would begin in 2027.

At the hearing, the Office of Developmental Programs said it serves about 62,000 people, with 42,000 receiving services through home and community waivers. A provider representative told lawmakers a predictable annual increase would help hire and keep staff. A Washington County parent described leaving work because in-home support was not there.

The Altoona Mirror, covering the same legislation, reported an average Pennsylvania DSP wage of $18.53 an hour and said the Department of Human Services supports the bill as a way to make funding more predictable. The bill was still in committee.