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House of Representatives
Session of 2023 - 2024 Regular Session

MEMORANDUM

Posted:	January 31, 2023 11:38 AM
From:	Representative Joe Hogan
To:	All House members
Subject:	Prudent Pay- Office of Developmental Programs

In the near future, I plan on introducing legislation to end the practice of prudent pay in the Office of Developmental Programs.   This directive was implemented in 2006 and is applied to fee for services providers under the guidance of the Office of Developmental Programs at DHS. For all Medical Assistance recipients, the provider submits claims to DHS, but their reimbursement for the claim is held for 21 days and often not released until the 28th day.   While prudent pay was suspended during the COVID-19 Health Emergency and was not continued at least for this fiscal year, there is no guarantee the suspension will continue beyond that time period.   I feel it is best to end the practice to ensure our providers get paid in a timely manner for the work. Our providers have bills to pay and allowing a faster reimbursement from the Department of Human Services assists them with their accounting practices and increase their normal cash flow, which ultimately affects the efficiency of their business model and allows them to continue providing these much-needed services and supports.   I hope you will join me in cosponsoring this important piece of legislation.

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