More Work Expected Into the Fall to Address Chapter 257 Funding

Key Chapter 257 Players

Administration and Finance Secretary Glen Shor oversees the Administration's fiscal obligations and requests for Supplemental Budget Amendments.

John Polanowicz

Health and Human Services Secretary John Polanowicz is responsible for working with the state's provider community and overseeing all program and contractual responsibilities. Secretary Polanowicz chairs the Commission overseeing Chapter 257 Implementation and has stated that compliance with Chapter 257 is a major goal of the Patrick Administration.

Governor Patrick 2

Governor Deval Patrick championed the passage of Chapter 257 Rate Reform early in his Administration to help stabilize the human services provider community and to bring additional resources to the field to provide fair and adequate rates to providers enabling them to pay fair and more adequate wages to the human service workforce. As a friend of the human service community, advocates expect the Governor to call for needed additional dollars in FY 14 to adequately fund compliance with Chapter 257.

The Collaborative
includes members of:
ABH

FY 14 Conference Report Expected to Not Include Full Costs of Chapter 257 Rate Reform

As lawmakers continue to address the FY 14 budget in Conference Committee, and remaining state obligations for FY 13, funding for Human Service programs covered by Chapter 257 remain to be addressed first by the Administration and then subsequently by the Legislature.

The Conference Committee Report, expected to be issued soon is not expected to contain full funding for fulfilling the state's obligation in Chapter 257.

Advocates and lawmakers are expecting the Patrick Administration to disclose its plans over the next several weeks to comply with the law and likely to ask for the needed funds in a subsequent Supplemental FY 14 Budget Request.

According to Chapter 257, the state rate setting law passed early in the Patrick Administration, 70% of all purchase of service programs were to have seen rates adjusted to reflect actual costs by January 1, 2013.

Leaders of The Collaborative are concerned that the State has fallen behind in its implementation schedule.

The Collaborative has spoken with both the Executive and Legislative branches about this shortfall in the budget and is calling upon the Patrick Administration to continue with the process of complying with the state's Chapter 257 Regulations.

In the Governor's Budget, the Administration indicated that new rates, set by the Center for Health Information and Analysis (CHIA) would be rolled out by October 1, 2013, at 50% of the due amount.

The Collaborative's Counsel has advised the Administration that partial payment of the state set rate is in violation of the State's Chapter 257 law.

Making the state's intentions even more confusing is the fact that EOHHS has also directed state agencies to re-contract with providers at current rates, up to January 1, 2014, implying that new rates might take effect at that time.

Complicating it even more, EOHHS has also advised members of The Collaborative that the likely rate roll out could be as late as the fourth quarter of FY 14 (April 2014).

The Collaborative is meeting with both EOHHS and ANF leadership to urge the Administration to adhere to Chapter 257, which requires the State to meet specific deadlines to address a 25 year absence of rate increases and adjustments based upon actual cost.

Next steps in the Chapter 257 process is expected to include actions by the Secretaries of EOHHS and ANF advising the Governor of the full amount of the State's liability and then the Governor seeking an FY 14 Supplemental Budget Request to reflect the accurate cost of human service programs in compliance with Chapter 257.