Fact Sheet: How Medicaid/Medi-Cal Affects Regional Center Consumers

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Fact Sheet: How Medicaid/Medi-Cal Affects Regional Center Consumers

The Lanterman Act is the California law that guarantees more than 300,000 people with developmental disabilities the right to services and supports they need to live a more independent and productive life...

How are services for people with developmental disabilities funded? 

The Lanterman Act is the California law that guarantees more than 300,000 people with developmental disabilities the right to services and supports they need to live a more independent and productive life. The Department of Developmental Services (DDS) is the state agency responsible for implementing the Lanterman Act. DDS contracts with regional centers, which are private, non-profit corporations, to either provide services to people with developmental disabilities or to arrange for others to provide the needed services. 

Although the Lanterman Act is a state law, federal funding represents a significant portion of all funds used to support services for people with developmental disabilities in the state. One of the main sources of federal funding is Medicaid (called Medi-Cal in California). In fact, in the 2017-2018 budget year, Medi-Cal alone accounts for over 30 percent of all funding used for community-based services for people with developmental disabilities. The chart below shows the breakdown of all funding sources allocated in the 2017-2018 budget for these services

How are Medi-Cal funds used to help regional center consumers? 

There are several different programs under Medicaid/Medi-Cal that account for the majority of Medi-Cal funding ultimately used by regional centers for the benefit of people with developmental disabilities. The three main programs under Medi-Cal are the Home and Community-Based Services (HCBS) Waiver, 1915(i) State Plan Amendment, and Targeted Case Management. 

Medi-Cal helps to pay for a wide range of services that regional center consumers can use to live, work, and play in their communities and to stay out of institutional settings. These are some of the services that Medi-Cal helps to pay for: 

  • Respite
  • Day program 
  • Tailored day services
  • Independent living services 
  • Transportation
  • Supported living services 
  • Supported employment
  • Crisis intervention 
  • Skilled nursing
  • Social skills therapy 
  • Behavioral supports
  • Dental services 
  • Cognitive rehabilitative therapy
  • Neuropsychology services 
  • Housing and vehicle modifications
  • Assistive technology 

Medi-Cal also helps to pay for Case Management which helps identify children and adults with developmental disabilities, locate services and providers, and monitor care on an ongoing and regular basis. Services under this program include: 

  • Comprehensive assessments and periodic reassessments 
  • Developing and monitoring Individual Program Plans 
  • Discharge planning 
  • Referral and related activities 

Does Medi-Cal Help People Who Have Higher Family Income? 

Typically, there are income limits on those who receive Medicaid services. The HCBS Waiver program, however, waives Medi-Cal income guidelines so that a person may be found eligible even if their parents’ or spouse’s income is too high to qualify. This is important because a family’s health insurance or income may not cover the full cost of needed services. This waiver of income limits is known as Institutional Deeming. 

Disclaimer: This publication is legal information only and is not legal advice about your individual situation. It is current as of the date posted. We try to update our materials regularly. However, laws are regularly changing. If you want to make sure the law has not changed, contact DRC or another legal office.