News Council submits testimony at Chapter 257 rate hearing

The Providers’ Council submitted testimony today at a Chapter 257 hearing regarding updated rates for Family Stabilization Services.

The rates for both services were being updated to include a cost adjustment factor (CAF) of 2.71 percent and all staff salaries were benchmarked to the Massachusetts Bureau of Labor Statistics (BLS) median wages as dated May 2022 at the 53rd percentile. The tax and fringe rates for both services were also benchmarked to 27.38 percent and the administrative allocation was benchmarked to 12 percent.

The Council urged the Executive Office of Health and Human Services (EOHHS) to incorporate the 75th percentile of the BLS data to ensure community-based human services organizations are able to recruit and retain workers in an increasingly competitive environment.

The Council also asked EOHHS to discard its inadequate CAF of 2.71 percent and to consider using the IHS pessimistic scenario data, which would set the CAF at 4.24;  include 5.1 percent for retirement in the tax and fringe rate, setting the overall rate at 32.48 percent; and raise the administrative allocation to between 15 and 18 percent.

Click here to read the Council’s full testimony.

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