Funding of Services

Certified agencies receive funding through state general funds and/or federal funds. The funding sources include:

ICF/MR-Intermediate Care Facility for the Mentally Retarded:
A Medicaid program that provides funding for services to people with developmental disabilities at the South Dakota Developmental Center in Redfield. ICF/MR is based on a medical model with federal requirements regarding safety and sanitation, plan development, professional services, etc.

ICF/MR funding can be used to serve adults and children. This program requires a non-federal match which is usually about 1/3 of the reimbursement rate. Federal regulations are the basis for both financial eligibility and eligibility based on disability. Included in the funding provided by ICF/MR funding is the cost for room and board services.

For more information regarding the Centers for Medicare and Medicaid Services (CMS) ICF/MR information site, please visit the CMS website at http://www.cms.hhs.gov.

HCBS Waiver-Home and Community Based Service Waiver:
The HCBS program is based on a waiver of federal regulations pertaining to the ICF/MR program. A state must submit and receive approval from the federal government to maintain their HCBS program. South Dakota began participating in this program in 1981. The waiver provides an alternative to the ICF/MR program. All 19 community support providers participate in the HCBS program.

HCBS funding can be used to serve children and adults. This program also requires a non-federal match of approximately 1/3 of the reimbursement rate. People usually use Supplemental Security Income (SSI) for room and board costs. Examples of services that are provided under the HCBS waiver program include case management, training and habilitation services, prevocational training, and supported employment.

CTS-Community Training Services:
CTS is the only funding source available for services that is strictly state general funds. It is the smallest funding program, but also the most flexible. CTS is typically utilized for individuals that need less intensive services or who do not meet the financial eligibility for ICF/MR or HCBS funded services. The three main services that are provided under the CTS program are prevocational training, community living training and expanded follow along/support.

Title XIX/Medicaid:
Title XIX of the of the Social Security Act is commonly referred to as Medicaid. In addition to ICF/MR and HCBS, Medicaid encompasses an array of services including care provided in nursing facilities, health benefits, etc. Eligibility for Medicaid is determined by local Department of Social Services offices. For further information regarding Title XIX/Medicaid, please visit http://www.dss.sd.gov.