DDS Rate Reform September 2026 Update: Service-Code Exemptions and Authorization Cleanup

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California DDS published updated rate-reform service-code exemption data on September 14, 2026. The report shows that the post-implementation phase is not only about new rates. Regional Centers and providers are still resolving cases where an existing service does not align cleanly with the service descriptions established in statute, regulation, or DDS directives.

[!NOTE] Foundational Guide: For the core reimbursement models and cost reporting rules, read our foundational explainer: DDS Rate Reform 2026: What California Regional Center Providers Need to Know.

What an exemption is for

DDS says most services transitioned to the appropriate service codes under rate reform. When a Regional Center determines that a provider’s service does not fit an updated service description, it must request DDS approval to use one of the affected legacy or exceptional codes.

The September report focuses on service codes 048 (Client/Parent Support/Behavior Intervention), 055 (Community Integration Training Program), 063 (Community Activity Support Services), 103 (Specialized Health, Treatment and Training), and a small ‘Other’ category.

The September 14 totals

The percentages above are calculations from the DDS counts. They show that approval is the most common outcome, but nearly one in five requests was rescinded. The report does not explain why each request was rescinded, so providers should not treat rescission as equivalent to denial.

Service code 055 accounts for most requests

Code 055 represents 248 of the 440 total requests, or about 56%. Code 063 had 104 approvals out of 110 requests. These figures are descriptive; they do not establish a provider’s likelihood of approval because the report does not provide the facts, service design, Regional Center, or rationale for individual requests.

What Regional Center vendors should do now

1. Map vendor codes and subcodes: Create a current crosswalk from each vendor code and subcode to the service actually authorized and delivered.
2. Flag mismatched POS authorizations: Identify consumers whose POS authorization still references a code, rate, or service description that no longer matches the operational model.
3. Verify written exemption records: Do not assume an exemption request has been approved. Retain the written Regional Center and DDS determination.
4. Isolate partial approvals: Track partial approvals separately because the authorized scope may differ from the service originally requested.
5. Pre-bill audit checks: Reconcile authorization dates, units, rates, and service codes before generating monthly eBilling claims.
6. Proactive escalation: Escalate unresolved code alignment before services accumulate under an uncertain billing path.

Authorization cleanup remains part of the transition

DDS has also continued publishing authorization-completion reports. Regional Centers were asked to count outstanding authorizations that required conversion because of rate reform. For providers, that means the safest assumption is not that every authorization was automatically updated. Verify each active authorization against the current service code, subcode, rate, effective period, and units before billing.

Where CareAutomate fits

CareAutomate helps Regional Center providers connect the POS authorization, consumer, assigned staff, delivered service, signed documentation, and billing-ready record. It does not decide whether a DDS exemption should be approved. It reduces the risk that an approved exception, revised authorization, or new rate remains trapped in an email while staff continue documenting and billing against outdated data.

If your team is reconciling rate-reform authorizations manually, explore how CareAutomate streamlines authorization tracking, unit utilization, documentation, and eBilling preparation.

[!NOTE] EVIDENCE BOUNDARY: The September report provides statewide counts but no organization-level approval criteria or case rationales. Use it to understand the scale and distribution of transition work—not to predict the outcome of a specific exemption request.

Official sources

• DDS service-code exemption totals as of Sept. 14, 2026: https://www.dds.ca.gov/wp-content/uploads/2026/09/RateReform_ExemptionData_20260914.pdf
• DDS rate-reform directives and updates: https://www.dds.ca.gov/rc/vendor-provider/rate-reform/directives-updates/
• DDS September 2026 rate-reform timeline: https://www.dds.ca.gov/wp-content/uploads/2026/09/RateReform_ProcessTimeline_20260914.pdf