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HB 580

An Act amending Title 35 (Health and Safety) of the Pennsylvania Consolidated Statutes, providing for public health; imposing duties on the Department of Environmental Protection relating to lead levels in soil; and imposing penalties.

2025-2026 Regular Session Introduced by Heather Boyd and 19 co-sponsors

HB 580 would study and plan a new Medicaid community service, CAET, to expand nonresidential day activities and employment supports for people with IDD.

Referred to Environmental & Natural Resource Protection
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Bill Summary · HB 580

Summary — HB 580: Expand Day/Employment Options / Intellectual and Developmental Disabilities

Status: Reported Favorably with Committee Substitute (Reptd Fav Com Substitute)
Subject areas: Medicaid, developmental disabilities, DHHS, health services, budgeting/appropriations

Main purpose

HB 580 directs the state Department of Health and Human Services (DHHS / Division of Health Benefits) to pursue creation of a new Medicaid community service — “Community Activities and Employment Transitions” (CAET) — or, under the committee substitute, to study the feasibility of adding that service. The goal is to expand meaningful day‑time activity and employment supports for people with intellectual or developmental disabilities (IDD).

Key provisions (committee substitute version)

  • Require DHHS to study the feasibility of a new CAET Medicaid service for individuals age 16 and older with intellectual or developmental disabilities. The study must consider implementing CAET by one of several mechanisms: an 1115 waiver, a 1915(i) State Plan amendment, or inclusion in an existing waiver.
  • Define design principles: CAET should be non‑residential, modeled on the non‑residential components of existing “Long‑Term Community Supports” programs (e.g., Vaya Health and services provided by Alliance Behavioral Healthcare), and originate from facilities meeting Home‑ and Community‑Based Services (HCBS) standards.
  • Mandate stakeholder collaboration during study/development: DHHS must work with MARC (Marketing Association for Rehabilitation Centers), NCARF (North Carolina Association for Rehabilitation Facilities), NCAPSE (NC Association of Professional Supported Employment), all LME/MCOs, and other relevant stakeholders. The Commission for Mental Health, Developmental Disabilities, and Substance Abuse Services will also review related rules.
  • Authorize DHHS to seek necessary federal approvals (CMS) — State Plan amendments or waivers — to implement any feasible CAET service.
  • Reporting and rule review: DHHS must submit a report summarizing the service definition, estimated state cost, needed statutory changes, licensing recommendations, and implementation pathway.

Budget / Fiscal provisions (committee substitute)

  • Appropriates nonrecurring funds to DHHS to support the feasibility work:
    • $500,000 (nonrecurring) for FY 2023–24 to support the feasibility study.
    • $2,000,000 (nonrecurring) for FY 2024–25 to support drafting requests/authorities necessary to implement a proposed service if feasible.

(NOTE: an earlier version of the bill sought direct implementation with larger recurring appropriations — e.g., $4.5 million recurring in FY 2023–24 and $9.0 million recurring in FY 2024–25 — but the committee substitute narrows the immediate action to a feasibility study and planning funds.)

Who is affected

  • Primary: Medicaid beneficiaries with intellectual or developmental disabilities (age 16+ under the committee substitute).
  • Service providers: community rehabilitation and employment providers (MARC, NCARF members, supported employment providers), LME/MCOs, and facilities that must comply with HCBS standards.
  • DHHS / Division of Health Benefits: program development, rulemaking, federal waivers/submissions, and reporting responsibilities.
  • State budget: short‑term nonrecurring planning costs; larger recurring costs could follow if CAET is adopted and funded.

Timeline / procedural notes

  • Under the committee substitute: DHHS must complete the feasibility study and submit the required report (committee text sets an April 1, 2024 reporting deadline in its draft form). DHHS may then pursue federal approvals; coverage could not begin earlier than the earliest federal/administrative approval date specified (prior drafts placed an earliest coverage date of Jan 1, 2024 if implemented).
  • The measure requires rule review and possible amendments to existing NCAC rules governing community supports.

Potential impact

If implemented, CAET would expand nonresidential day‑services and employment transition supports for people with IDD, aiming to increase community integration and employment outcomes. The committee substitute phases the change as a state‑led feasibility/planning effort with modest one‑time funding; statewide fiscal impact would depend on the final service design, eligibility, and whether recurring state funds and federal matching funds are provided for implementation.

Compiled from official sources — confirm details with the bill’s official record.

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