Understanding the DDS Rate Reform & Behavioral Services Mandate:
What Providers Need to Know Before 2025
Beginning January 1, 2025, the California Department of Developmental Services (DDS) will implement new service descriptions, rate models, and billing procedures that affect all vendors currently providing services to individuals with developmental disabilities. If you are a provider or administrator operating a day program, residential home, or behavioral service agency—this blog is for you. At EveryDay ABA, we’re here to help you make sense of the changes, maintain compliance, and continue delivering exceptional services without disruption.
What’s Changing?
Under the California Department of Developmental Services (DDS) Rate Reform
and Behavioral Services Mandate, the following changes take effect:
- New service descriptions and subcode combinations must be matched to the services your program is actually delivering.
- Billing units and rate models will be updated across all regional centers.
- The Rate Reform Service Acknowledgement Form must be submitted by March 31, 2025.
- Individual Program Plans (IPPs) may need to be updated if the service delivery model is changing.
- Services must be aligned with Title 17 and Title 22 of the California Code of Regulations.
NOTE: This directive supersedes previous DDS materials when it comes to service descriptions and rate-setting.
Key Deadlines to Know
- January 1, 2025 – New service descriptions and billing procedures begin.
- March 31, 2025 – Rate Reform Service Acknowledgement Form due.
- June 30, 2026 – All direct staff must be trained according to new staffing standards (including 40-hour behavior or medical-focused trainings depending on the service model).
Service Codes to Pay Attention To
Several commonly used service codes are being phased into the updated model or replaced entirely:
Behavioral Day Services (Service Code 532)
- Requires a BCBA or Behavior Management Consultant
- Minimum 2 hours/month of consultation per individual (prorated allowed)
- Staff must receive 40-hour behavior-focused training
Medical Day Services (Service Code 533)
- Requires LVN/PT supervision and RN oversight (8 hrs/month)
- Staff must complete 40-hour healthcare training
Other Services Being Transitioned:
- Activity Centers (505), Adult Development Centers (510), Behavior Management Programs (515)
- In-Home Day Programs (091)
- Day Services (531)
Current providers must work with their regional centers to identify which updated descriptions most closely align with their current services.
What About Billing?
- Providers with daily rates may continue billing daily until at least December 31, 2025, based on authorized staffing ratios.
- Those with hourly rates will continue hourly billing with updated staffing ratios.
- Supplemental staffing (Service Code 110) can still be used for individuals needing 1:1 or 1:2 support.
Held Harmless Clause:
If your current rate is above 90% of the new rate model, you’ll maintain your current rate until June 30, 2026. If your rate is between 90–100%, you may qualify for 100% reimbursement through the Quality Incentive Program.
Do IPPs Need to Be Updated?
If the service type is changing, or if you’re adjusting staffing levels or rate codes then YES. If you’re only updating the level of staff or subcode and the service type remains the same then NO. In these cases, IPPs should be updated at the next scheduled meeting, and billing may continue using the current service code (with the new rate) in the meantime.
How EveryDay ABA Can Help
Our team specializes in behavioral consultation,
OBM, compliance, and staff development. We can support you by:
- Aligning your services with the correct DDS service description and subcode
- Ensuring your plans and trainings meet Title 17/22 requirements
- Providing BCBA consultation (2 hrs/month minimum)
- Delivering RBT-equivalent 40-hour trainings and trauma-informed staff development
- Assisting with Rate Reform Form preparation
- Conducting internal audits and documentation review
- Supporting IPP alignment and billing transitions
- Monthly RN oversight (8 hrs/mo minimum)
- Health care plan development and monitoring
- Medication review and documentation assistance
- Staff training on chronic condition management
Ready to Get Compliant Before the Deadline?
We know this process is complex—and we’re here to simplify it. Whether you need help preparing documentation, training your team, or understanding your service alignment, we’re here to partner with you.