What is Local Billing?

When you or a loved one are working with Summit DD to develop your plan for services and connect to supports that you use, you may hear the terms local billing and waiver. These terms are types of funding used to pay for the essential services that you receive on a daily basis. While many are familiar with what a waiver might be, there are quite a few question about what local billing means?

Funding for Services

All of the eligible services that a person with a developmental disability receives are funded in one of two ways. Services are either funded through 100% local tax dollars or Medicaid waiver dollars, which is a combination of federal funding and local funding (tax dollars). Services only using local tax dollars are billed locally, which means that providers bill Summit DD directly and use local money to fund the services that you or your loved one receives.

Waiver Billing

A waiver is the term used for federal Medicaid money that is approved to pay a portion of an individual’s daily services. Waivers pay for approximately 60% of a person’s services, and must be paired with local funds to make up the remaining 40%. This is commonly referred to as a waiver match. The waiver match is paid by county boards, such as Summit DD, using local funds. Currently, 86% of adults receive funding through a Medicaid and local combination, meaning approximately 14% are locally funded.

Check out the example in our guide to an Individual’s Budget for Services budget for services here.

Local Billing

Local funds used for services such as, early intervention services, habilitation programs, vocational programs and some transportation for example, are raised through a local tax levy once every six years. The levy funds provide the crucial support to fund either 100% of a person’s services (for those without a waiver) or approximately 40% of a person’s services for a person who has a waiver.

How are local funds used?

Each year, Summit DD uses local levy tax money to fund approximately seven million dollars for services that require 100% local billing. This funding ensures that young children receive the necessary early intervention services that they need to thrive and provides essential services to teens and adults.  Additionally, one third of Summit DD’s local tax revenue is used to fund the waiver match for the more than 1,800 people receiving services throughout the county.

Why are Local Funds Important?

Local funding is a vital part of ensuring that people receive the services and supports they need. Whether a service is paid for using a waiver plus the local match or through 100% local tax dollars, Summit DD is working hard to provide the resources and connections you need to meet your goals.

Do you have questions about local billing or waivers? Contact us!

Looking for more info? Check out our handy glossary. It’s full of commonly used terms and acronyms.

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