Home and Community‑Based Living at Home (LAH) Waiver — Application Process and Coverage Criteria
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Governance of Alabama Medicaid's LAH (Living at Home) HCBS waiver program detailing authority, purpose, service descriptions, provider requirements, and settings requirements for individuals with intellectual disabilities aged 3 and above who would otherwise require ICF/IID care.
No material clinical or coverage changes in this revision.
Coverage and Eligibility Criteria
LAH Waiver coverage criteria (partial doc)
General coverage and eligibility rules:
Coverage criteria for LAH Waiver services
Services under the LAH Waiver are covered when documented in the approved person-centered care plan, medically necessary to avoid institutionalization, and meet specific provider, documentation, and limit requirements.
Eligibility and financial criteria
Medical and financial eligibility rules for LAH Waiver HCBS.
Service components and limits
Descriptions of covered Community Specialist Services and component requirements.
Provider qualifications for review team
Minimum qualifications for professionals serving on the medical review team.
ONE OF
- Nurse: graduate of a licensed school of nursing with current state certification as an LPN or RN; knowledge and training in intellectual disabilities; minimum two years' nursing experience.
- Social Worker: four-year college graduate with an emphasis in social work; knowledge and training in intellectual disabilities; minimum two years' social work experience.
- Psychologist: Ph.D. in Psychology; licensed psychologist with knowledge of test instruments for individuals with intellectual disabilities; minimum two years' experience in psychology.
- Other disciplines as necessary: may include special education, speech pathologist, audiologist, physical therapist, optometrist, occupational therapist, vocational therapist, recreational specialist, pharmacist, MD, psychiatrist, and other skilled professionals as necessary.
LAH waiver application and authorization criteria
Operational criteria for application, level-of-care, and service initiation:
Billing, Units, and Service Limits
| Occupational and Physical Therapy billed in 15-minute units; limited to an initial plan maximum of 50 hours (200 units). |
| Speech and Language Therapy Services billed as encounter units; limited to waiver recipients age 21 and over when covered under the waiver (under 21 covered by EPSDT/state plan). |
| Positive Behavior Support Services have three provider levels (two professional, one technical) with separate procedure codes and rates; unit of service is 15 minutes. |
| Many waiver services (including Physical and Occupational Therapy and Positive Behavior Support) are billed in 15-minute units; Skilled Nursing is billed hourly. |
| HCPC | Payment is based on the number of units of service reported for each HCPC code and the rate in effect on the date of service. |
| No codes listed |
Provider Enrollment, Billing, and Operational Requirements
Signed contract, qualifications, and legal compliance
Each provider must have a signed provider contract, meet applicable provider qualifications, and comply with all applicable state and federal laws and regulations; services reimbursable through EPSDT cannot also be reimbursed under the LAH waiver.
- Signed provider agreement required
- Must meet state licensure/certification and provider qualifications
- Must comply with state and federal laws and regulations
- EPSDT-reimbursable services are excluded from LAH waiver reimbursement
Transportation included in habilitation service rates
Transportation that occurs between habilitation service sites or as part of Prevocational/Day Habilitation is considered a component of the habilitation service and is included in the service rate; Day Habilitation has a separate transportation rate structure and Day Habilitation itself is limited to five hours per day.
- Transportation between residence and provider facility or between Prevocational sites is a component of the service
- Day/Community Habilitation has four reimbursement levels and four transportation levels tied to staffing ratios
- Day Habilitation cannot exceed five hours per day
Physical Therapy: orders, documentation, and 15‑minute billing
Physical Therapy requires a physician's prescription, an initial assessment, and a documented treatment plan with established goals in the case record; providers must maintain service logs and signed treatment notes and bill PT in 15‑minute units with the initial plan limited to 50 hours (200 units).
- Physician prescription required
- Initial assessment and treatment plan with goals must be in case record
- Physical therapist must document and sign each treatment note (e-signatures allowed if secure)
- Maintain service log documenting specific days PT delivered
- Bill in 15‑minute units; initial plan limited to 50 hours (200 units)
Positive Behavior Support: documentation, supervision, and annual unit limits
Positive Behavior Support Services require documentation including functional behavior analysis and a behavior support plan; providers must maintain service logs, adhere to provider-level qualifications and supervision requirements, and observe annual unit maximums (1200 combined units per year, maximum 800 professional units). Group therapy is not reimbursable and behavior management plans must be reviewed every 30 days.
- Functional behavior analysis and BSP required
- Service log documenting specific days of delivery
- Provider-level distinctions and supervision required
- Behavior management plans reviewed/re-justified every 30 days
- Maximum 1200 combined units/year and max 800 professional units/year
- Group therapy will not be reimbursed
Skilled Nursing: plan inclusion, licensing, hourly billing, and self-direction
Skilled Nursing must be included in the approved person-centered care plan, provided by appropriately licensed nurses within the Nurse Practice Act scope, billed by the hour, and may be self-directed when the participant is self-directing Personal Care Services; nursing may include training and supervision related to medical care and assistance with ordinarily self-administered medications by the personal care worker.
- Skilled Nursing listed on approved person-centered care plan
- Provided by RN or LPN/LVN under RN supervision and licensed in state
- Billed by the hour
- May be self-directed when Personal Care is self-directed
- Includes training/supervision related to medical care and assistance with medications
Claims deadlines and unit‑based payment methodology
Submit all claims within one year from the date of service; payment is based on the rate in effect on the date of service and on the number of units reported for each HCPC code.
- All claims must be submitted within one year of date of service
- Payment based on rate in effect on date of service
- Payment determined by number of units reported for each HCPC code
- Waiver year costs and units must be captured on CMS 372 report
Medicaid enrollment, licensure, and sanctions for misrepresentation
Providers must enroll with Medicaid's fiscal agent and meet state licensure/certification and Alabama Medicaid Provider Manual requirements; failure to provide accurate truthful information or intentional misrepresentation may result in denial of application or permanent exclusion.
- Enroll with Medicaid's fiscal agent and obtain provider agreement
- Meet licensure/certification requirements of state and federal regulations and Provider Manual
- Accurate and truthful information required; misrepresentation may lead to denial or permanent exclusion
LTC Admissions Notification transmission and authorization to begin billing
Upon receipt of the financial award letter, complete and electronically transmit the LTC Admissions Notification Form to Medicaid's Fiscal Agent; if accepted the information writes to the Level of Care file and the provider may begin services and billing; rejected transmissions must be corrected and retransmitted and successful transmission is the record of approval to begin services.
- Complete LTC Admissions Notification Form upon financial award letter
- Transmit electronically to Medicaid's Fiscal Agent and check next business day for acceptance/rejection
- Accepted transmission writes to Level of Care file and authorizes service start and billing
- Rejected transmissions must be corrected and retransmitted
- Successful transmission serves as approval to begin rendering service (no LTC-2 letters sent)
Recoupment risk when medical necessity or eligibility not met
Alabama Medicaid will initiate recoupment of payments when state or federal medical necessity or eligibility requirements are not met and may seek recoupment from ADMH if eligibility was incorrectly certified by ADMH.
- Medicaid conducts monthly retrospective random-sample reviews for appropriateness of admissions and annual redeterminations
- Recoupment initiated when medical necessity or eligibility requirements are not met
- Medicaid may seek recoupment from ADMH for improperly certified eligibility
Reiteration: enrollment, licensure, and compliance expectations
Providers of waiver services must enroll with Medicaid's fiscal agent, meet applicable state licensure/certification, and adhere to the Alabama Medicaid Provider Manual; intentional misrepresentation or failure to provide truthful information may result in application denial or exclusion.
- Enrollment through Medicaid's fiscal agent required
- Must meet licensure/certification and Provider Manual requirements
- Misrepresentation may result in denial or permanent exclusion
Key Terms and Service Definitions
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