An act relating to designated and specialized service agency payment methodology

S.194 establishes a new monthly prospective payment system for Vermont's designated and specialized service agencies that provide community-based human services. It requires the Human Services Secretary to calculate payments based on per-member per-month amounts derived from approved agency budgets, updated annually with inflation adjustments and geographic cost factors. The bill mandates monthly payments on the first day of each month, annual rate recalculations, and an annual reconciliation process to align funding with actual service delivery. This directly affects community-based service providers receiving Medicaid funding, changing how they are reimbursed for services to individuals with approved care plans.