Key Takeaways from the DHCS LEA Billing Stakeholder Meeting - April 24, 2024
The DHCS LEA Billing Stakeholder Meeting on April 24, 2024, brought forth a series of important updates and strategic shifts. To ensure you're fully informed, we’ve highlighted the key points discussed during the session.
Significant Developments Affecting LEA Billing Operations
Enterprise Cost Reporting System (ECRS): DHCS announced its plans to develop an enterprise cost reporting system in which LEAs will report and certify their annual Cost and Reimbursement Comparison Schedule (CRCS), starting with the FY 2023/24 CRCS. This is big news as it will fundamentally change the cost submission process (but will not change the nature of costs reported). We are looking forward to learning more as DHCS develops the new process and wish them luck!
Administrative Fee Changes: While initially announced back in January, DHCS confirmed that the increased administrative fee withhold that is applied to interim claims will take effect July 1, 2024. (This, as opposed to what was thought to be January 1, 2024.) The new 5% fee, authorized by AB 483, is a substantial increase from the historical 1% for claims processing and an additional 2% with an annual cap of $2.5M.
Status of Refund of Administrative Fees. Prior to AB 483, the 2% withhold by DHCS was to be capped at $2.5M per year. DHCS had identified a surplus of these funds and has been working to unravel the cause of this. On Wednesday, DHCS reconfirmed that there is a surplus of $1.5M that needs to be returned to LEAs. The details of who and how much, as well as when, are still pending.
CRCS Settlements and Audits Timeline: FROBHD released updates on the outstanding CRCS settlements and corresponding audits, including for the backcasted/amended CRCS years. The detailed timeline is as follows:
| Fiscal Period | Final Settlement Due | % of Settlements Concluded |
|---|---|---|
| 2015/16 Amended | June 1, 2025 | 64% |
| 2016/17 Amended | September 1, 2025 | 61% |
| 2017/18 Amended | September 1, 2025 | 61% |
| 2018/19 Amended | December 1, 2024 | 0% |
| 2019/20 | March 1, 2025 | 0% |
| 2020/21 | March 1, 2025 | 91% |
| 2021/22 | March 1, 2026 | 2% |
| 2022/23 | September 1, 2025 | 0% |
Stay tuned to our blog for more detailed analyses of new developments and insights on how they may impact your LEA. Our goal is to empower LEAs with knowledge to navigate these changes effectively. You can also access DHCS’s archive of these meetings by clicking here.
