Alaska Medicaid sets $989.83 daily rate for specialized homes serving people with complex disabilities

Alaska Medicaid now pays a flat $989.83 a day for specialized homes that care for people with disabilities who have highly acute, complex needs, under rules that took effect Friday, Oct. 2. It covers two new services, specialized family home habilitation and specialized group home habilitation. Habilitation is help with daily living and skills, delivered in a licensed home.

Specialized homes had been paid an interim $870 a day since July 2024, according to a Division of Senior and Disabilities Services memo, which said that rate would hold until regulations set one. The division announced the new rules in an e-alert. They let the Alaska Department of Health certify providers for the two services.

The division's Chart of Waiver Services Rates, dated Aug. 4, lists the $989.83 daily rate for specialized family home habilitation for both adults and children, and the same rate for specialized group homes. That compares with $483.15 a day for standard group home habilitation and with standard family home rates of $201.30 a day for adults and $217.84 for children. The specialized family rate is nearly five times the standard adult rate.

The rates apply in three Medicaid waiver programs, which pay for home and community care instead of institutional care: APDD, CCMC and IDD, serving adults with physical and developmental disabilities, children with complex medical conditions, and people with intellectual and developmental disabilities. The chart also lists acuity add-ons for standard family and group home habilitation, extra pay when a recipient needs dedicated one-on-one or two-on-one staff: $169.82 per eight hours for one direct-care staff member, and $339.63 for two.

The department said it did not expect the changes to require more state money.

The same regulatory package also sets rules for legally responsible individuals, such as parents of minor children or spouses, who provide two other waiver services, in-home supports and supported living.

Division Director Tony Newman will host a webinar on the changes Thursday, Oct. 22, from 11 am to noon. Advance registration is required; registration questions go to [email protected]. Residents may send questions about the rules ahead of time to [email protected] or ask them during the session.