1. (1) The rate paid to the Agency with Choice requires that:

   1. (a) The Agency with Choice will ensure that no less than 85 percent of the total payments to the Agency with Choice is spent on total compensation for Direct Support Workers who furnish those services. For the purpose of these rules, total compensation includes wages and benefits including, but not limited to, health insurance, retirement plans, life and disability insurance, paid time off, mileage, employer employment taxes, employee employment taxes, employee required training, and workers compensation; and
   2. (b) The amount for administration and overhead may not exceed 15 percent of the rate paid to the Agency with Choice by the Department.
2. (2) Any rate increase provided by the Department requires the Agency with Choice to maintain the 85 percent direct care worker compensation and benefits threshold.
3. (3) The Agency with Choice must ensure that any increase intended to improve Direct Support Workers’ compensation must be fully passed on to Direct Support Worker compensation and benefits.
4. (4) The Agency with Choice must file annually with the Department detailed cost reports based on the Agency with Choice’s reporting period for the period ending each June 30th, and as requested by the Department. The Agency with Choice must submit the cost report no later than October 31st of each year.

5. (5) The required cost report details include the following Agency with Choice expenditures:

   1. (a) Average hourly wage provided to Direct Support Workers;
   2. (b) Total costs of Direct Support Worker wages and the hours provided to Individuals;
   3. (c) Total costs of Direct Support Worker benefits including the types of benefits offered;
   4. (d) Total costs for overtime of Direct Support Workers, the percentage of Direct Support Workers receiving overtime, and the average number of overtime hours worked per week;
   5. (e) Total costs for mileage reimbursement to Direct Support Workers;
   6. (f) Supervisor and trainer wages, benefits and other expenses;
   7. (g) Administrative costs and hours including CEO compensation; and
   8. (h) Other overhead including, but not limited to, details on building, IT and corporate costs.

6. (6) The Agency with Choice must provide early cost reports if any of the following is true:

   1. (a) The cost report is requested by the Department;
   2. (b) There is a change of ownership; or
   3. (c) The Agency with Choice’s license is terminated or expired.

Statutory/Other Authority

Or Laws 2024, ch. 37

Statutes/Other Implemented

ORS 124.050 & Or Laws 2024, ch. 37

History

APD 17-2025, adopt filed 12/10/2025, effective 12/15/2025