The proposed legislation, General Assembly Raised Bill No. 5560, aims to establish payment parity for nonprofit organizations that provide similar services to the Departments of Developmental Services and Social Services. Effective July 1, 2026, the bill mandates that the commissioners of both departments evaluate and compare the rates they pay to nonprofit providers for the same services. If one department is found to be paying lower rates for equivalent services, the bill requires that department to increase its rates to match the higher payment, thereby ensuring equitable compensation for nonprofit organizations.

Additionally, the bill stipulates that by October 1, 2026, the commissioners must submit a joint report to the relevant standing committees of the General Assembly. This report will detail the services provided by nonprofit organizations under contract with each department, the payment rates prior to any adjustments, the financial implications of achieving payment parity, and the costs to the state if the departments were to provide these services directly instead of contracting with nonprofits. The bill does not include any deletions from current law but introduces new legal language to facilitate these changes.