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​​​​​HCBS Provider Minimum Wage Increase

As we approach the end of the year, the department is actively working to confirm and post the 2025 Home and Community-Based Services (HCBS) Reimbursement Rates for specific provider types and procedure codes. This increase is due to the enactment of Senate Bill 3 which established a minimum pay rate increases over a 5-year period for certain provider types and procedure codes. In turn, DHCS is providing a list of the maximum payable rates that are applicable to HCBS programs.

​Service Description​
​Service Code
and Modifier
​Maximum Payable Rate 2025
​Unit​
​Waiver
​Tier 1- Assisted Living Services – Homemaker; Home Health Aid; Personal Care
​T2031 U1
​$93.86
​Per Diem
​ALW
​Tier 2- Assisted Living Services – Homemaker; Home Health Aid; Personal Care
​T2031 U2
​$112.16
​Per Diem
​ALW
​Tier 3- Assisted Living Services – Homemaker; Home Health Aid; Personal Care
​T2031 U3
​$130.44
​Per Diem
​ALW
​Tier 4- Assisted Living Services – Homemaker; Home Health Aid; Personal Care
​T2031 U4
​$176.15
​Per Diem
​ALW
​Tier 5- Assisted Living Services – Homemaker; Home Health Aid; Personal Care
​T2031 U5
​$264.97
​Per Diem
​ALW

In order to be reimbursed at the new rate, agencies will need to submit claims using the higher rates listed above for all services provided effective January 1, 2025. This will allow your agency to be reimbursed the new rates once they are implemented, as opposed to needing to resubmit claims. DHCS will automatically issue an Erroneous Payment Correction (EPC) once the system is updated to reprocess any claims submitted for Dates of Service January 1, 2025, to the date of system implementation.

Please email the ALW vanity inbox with any additional questions.

​Assisted Living Waiver

The Assisted Living Waiver (ALW) is a Home and Community-Based Services (HCBS) waiver that was created by legislation that directed the California Department of Health Care Services (DHCS) to develop and implement the program to test the efficacy of assisted living as a Medi-Cal benefit. The Centers for Medicare and Medicaid Services (CMS) approves waiver renewals in five-year increments, and expansion of the program into additional counties.  Currently, the ALW ​is available in 15 counties and the current five-year waiver term is approved for March 1, 2024 – February 28, 2029.

To be eligibl​​e to receive services as an ALW Participant, an individual must meet the following ALW eligibility criteria:

  • Age 21 or older;
  • Have full-scope Medi-Cal eligibility with zero share of cost;
  • Have care needs equal to those of Medi-Cal-funded residents living and receiving care in nursing facilities;
  • Willing to live in an assisted living setting as an alternative to a nursing facility;
  • Able to reside safely in an assisted living facility or public subsidized housing;
  • Willing to live in an assisted living setting located in one of the following counties providing ALW services: Alameda, Contra Costa, Fresno, Kern, Los Angeles, Orange, Riverside, Sacramento, San Bernardino, San Diego, San Francisco, San Joaquin, San Mateo, Santa Clara, and Sonoma counties.

​​ALW is limited to individuals eligible for Medi-Cal, without a Medi-Cal share of cost, who require a nursing facility level of care and wish to live in a residential care setting or in publicly funded senior and/or disabled housing. ALW participants must have sufficient funds to pay for their room and board, with some funds remaining to meet personal and incidental needs. In determining Medi-Cal eligibility for individuals who are applying for enrollment into ALW, institutional and spousal impoverishment prevention rules are applied.

The goals of the ALW are to:

  1. facilitate a safe and timely transition of Medi-Cal-eligible seniors and persons with disabilities from a nursing facility to a community home-like setting in a Residential Care Facility for the Elderly (RCFE), an Adult Residential Care Facility (ARF), or subsidized public housing, utilizing ALW services; and
  2. offer eligible seniors and persons with disabilities, who reside in the community, but are at risk of being institutionalized, the option of utilizing ALW services to develop a program that will safely meet his/her care needs while continuing to reside in a RCFE, ARF, or public subsidized housing.

ALW Grievances

If you are an ALW participant and dissatisfied with your ALW facility, Care Coordination Agency (CCA), or the ALW services you receive, you may file an ALW grievance in the following ways:​

  • Grievances regarding the quality or receipt of ALW services must be submitted to your CCA via email, mail, or telephone. Find your CCA's contact information.
  • Grievances regarding the coordination of care by your CCA must be submitted to the Department of Health Care Services via email at: ALWGrievances@dhcs.ca.gov
  • All other grievances not listed above must be submitted to the California Department of Social Services, which will direct your grievance to your local ombudsman. Grievances can be submitted via telephone at (844) LET-US-NO ((844) 538-8766), via email at letusno@dss.ca.gov, or online.

For more information about ALW grievances, please review the ALW Grievance Fact Sheet​.

Current Waiver

​Approved ALW Amendments​​

​Approved Emergency Amendments

  • ​Approved Appendix K Southern California Wildfires​ (Effective January 7, 2025), in response to the Los Angeles and Ventura Counties Fire, which has burned over 70,000 acres, prompted evaluation orders and road closures, and continues to threaten structures, homes, and critical infrastructure. This amendment, temporarily expands the settings in which services can be provided and permits retainer payments for certain services. Additionally, the amendment authorizes a temporary suspension of the enrollment period and extension of the reenrollment period.. The listed flexibilities are authorized under this amendment apply to waiver participants impacted by the State of Emergency in Los Angeles and Ventura Counties.
  • ​DHCS obtained approval for flexibilities accepted under the federal 1135 waiver authority which will expire January 7, 2026, for Los Angeles and Ventura Counties. The following flexibilities are available immediately. 
    • Permit evacuating facilities (such as ICF-DDs, SNFs) to be fully reimbursed for services rendered to affected beneficiaries in alternative physical settings, such as temporary shelters or other care facilities. 
    • Permit some services to continue to be provided without a requirement for a new or renewed prior authorization. 
    • Temporarily allow services to be provided in settings that have not been determined to meet the HCBS Settings Rule criteria. 
    • Temporarily extend the timeframe to reinstate services and benefits to an individual who files a fair hearing request. 

​Assisted Living Waiver Current Enrollment

Current enrollment and waitlist information for the Assisted Living Waiver can be found on the enrollment dashboard, which is updated monthly. New applicants to the ALW should be aware the number of available slots is limited and there is a waitlist. Open waiver slots are release to Care Coordination Agencies on a regular basis. Please contact the Care Coordination Agency​ of your choice for the information. 

Expired Waiver​

Additional Program Resources:

​​​​​​​Please submit your ALW comments and questions to: ALWP.IR@dhcs.ca.gov​​​

Last modified date: 4/22/2025 10:53 AM