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Advocacy

Arkansas Rate Study:
Community Living Supports 23% Underfunded

 

For years, Medicaid Waiver providers, like ASN, have done everything possible to support people with intellectual and developmental disabilities to live in the community, often while being paid rates that do not come close to covering the real cost of care and supports. Staffing, specialized training, transportation, and 24/7 support all require skilled professionals and stable funding. Yet reimbursement rates have remained untouched and stagnant.

 

In 2025 the Arkansas legislature passed Act 1023, authorizing a rate study of the reimbursement rates paid by PASSEs to Medicaid Waiver providers. A rate study of this kind had not been conducted since Arkansas adopted the PASSE model in 2017.

The results of Arkansas’ study are in, and they confirm that current reimbursement rates paid to Medicaid Waiver providers are 23% below the actual cost of delivering services. The study mandates the implementation of the rate increase with periodic evaluations to stabilize the system.

 

A 23% increase is the bare minimum needed to keep services operating. This increase doesn't solve the long-standing need to pay DSPs a living wage and accurately value the profession, but it is a necessary increase to ensure the current system does not collapse. Without this adjustment, providers will continue to face staff shortages, shift gaps, and the constant risk of losing the community living supports people rely on every day.

 

Arkansas’ own data makes the truth undeniable: community living supports are severely underfunded. Implementing the 23% increase is the floor, not the ceiling, and it must be followed by ongoing evaluations so wages can continue to rise to sustainable levels.

 

Now is the time to act. Contact your Arkansas state senator and representative and urge them to fully implement the mandated 2025 Independent Rate Model (IRM) with no delays. Tell them this is about real Arkansans whose safety, independence, and place in the community depend on the choices they make now. Our voices must be as strong as the evidence.

 

Find your representatives: https://arkleg.state.ar.us/Legislators/Search

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Listen to KUAF's Community Spotlight with ASN CEO Dr. Syard Evans.

KUAF Community Spotlight
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