Resources

Client Alerts, News Articles, Blog Posts, & Multimedia

Everything you need to know about BMD and the industry.

Direct Support Professional Retention Payments

Client Alert
December 19, 2022

On December 15, the Ohio Senate and House passed House Bill 45, which authorizes the Department of Developmental Disabilities (DODD), in conjunction with the county boards of developmental disabilities, to launch their initiative to issue retention payments to Direct Support Professionals (DSPs). These retention payments will be distributed quarterly to participating home and community-based waiver providers to address the workforce crisis in the direct provider sector. Governor DeWine needs to sign the Bill to begin the payments, but he is expected to do so by the end of 2022.

Who is eligible?

Agency and independent providers in good standing that have received claim payments for the eligible services during the applicable calendar quarter will be eligible for an automatic retention payment. Eligible services include:

  • Homemaker/Personal Care (HP),
  • HPC-Daily Billing Unit,
  • HPC-Participant-Directed,
  • On-Site/On-Call,
  • Shared Living,
  • Transportation (Medical & Non-Medical),
  • Adult Day Support,
  • Career Planning,
  • Group Employment Support,
  • Vocational Habilitation, and
  • Individual Employment Support.

Independent providers will receive the retention payments automatically and do not need to take any further actions to receive them. Agency providers, conversely, must opt-in via the eMBS application on the DODD website, provide all required data for each quarter, and attest that funds were used in accordance with DODD requirements in order to receive retention funds. Agency providers must ensure that expenditures made using the DODD funds are not claimed in any other program.

When will the payments be made?

The initiative was originally approved by the federal Centers for Medicare and Medicaid Services (CMS) with an effective date of July 1. Therefore, initial payments will be for three quarters of payments (April through December) and will be staggered by provider type. Provider agencies and independent providers will receive their first payments in mid-January. Provider agencies will then distribute payments to their eligible DSP employees. DSPs employed by agency providers will receive payment from their employers in mid-March.

There is no definitive end date for payments at this time but DODD and the county agencies will continue to evaluate the program.

How much will retention payments be?

The retention payments for independent and agency providers will be calculated by multiplying 6.5% by the total amount of claims paid during the applicable calendar quarter for eligible services.

Agency providers will then need to calculate how much to pay each eligible employee based on the funds received. Employees may be allocated payments based on either (1) an equal percentage of their total wages or (2) an equal payment based on the payment divided by the number of employees. Agency providers may withhold up to 18% of the total payment for implementation and other costs, with additional reporting requirements. Agency providers may not use this payment as a way to increase hourly wages.

Generally, independent contractors of agencies will not be eligible for retention payments. However, DODD specifically identifies shared living contractors, where the agency bills for the contractor’s services, as an exception. Shared living contracted staff should be included in the employee payment calculation.

Where can I find the enrollment portal, or more information?

DODD has created a website specifically for these payments, which can be found at: https://dodd.ohio.gov/providers/RetentionPayment. This is also where the enrollment portal will be located from January 3-16.

If you have any questions about the DSP payments or how your agency might apply for them, please contact Ashley Watson at abwatson@bmdllc.com or your local BMD Healthcare Attorney.

DODDDirect Support Professionals
Client Alert

Multi-340B Contract Pharmacy Locations on the Brink? The Third Circuit’s Ruling Gives a Hint.

February 17, 2023The 340B drug discount program requires pharmaceutical manufacturers to offer to sell their products at significant discounts to safety net providers called “covered entities.” In 1996, the Health Resources and Services Administration (HRSA) issued guidance authorizing covered entities to enter into a contract pharmacy arrangement with a single third-party contract pharmacy, to which the manufacturer would ship 340B medications but bill the covered entity. In 2010, HRSA issued revised guidance permitting covered entities to enter into an unlimited number of contract pharmacy arrangements.Client Alert

Five Opportunities for Operations and Compliance Excellence in 2023

February 17, 2023With the holidays behind us and the rest of the year ahead, now is the perfect time to get your operational/compliance house in order! Though your list might be a mile (or an inch) long, here are five places to start.Client Alert

The Pregnant Workers Fairness Act - What Employers Need to Know

February 17, 2023Effective June 27, 2023, the Pregnant Workers Fairness Act (PWFA) will require employers with at least 15 employees to provide reasonable accommodations for qualified employees with pregnancy-related restrictions unless doing so would impose an undue hardship on the employer.Client Alert

Valley National Bank/Trulieve Loan: A Big Step Out of the Shadows

January 18, 2023In a late December press release, Trulieve announced that it had secured a $71.5 million commercial bank loan. In addition to the amount of the loan, which may be the largest commercial bank loan to date to a cannabis company, the release prominently identified Valley Bank and featured both a quote from Valley’s Senior Vice President, John Myers, and a description of the Bank’s service platform and commitment to the cannabis industry.Client Alert

The End of Non-Competes? The Impact It Will Have on the Healthcare Industry

January 10, 2023On January 5, 2023, the Federal Trade Commission (“FTC”) announced a proposed rule that, if enacted, will ban employers from entering into non-compete clauses with workers (the “Rule”), and the Rule would void existing non-compete agreements. In their Notice, the FTC stated that if the Rule were to go into effect, they estimate the overall earnings of employees in the United States could increase by $250 billion to $296 billion per year. The Rule would also require employers to rescind non-competes that they had already entered into with their workers. For purposes of the Rule, the FTC has defined “worker” to also include any employees, interns, volunteers, and contractors.”
Older posts
Newer posts