Children’s Integrated Services (CIS) delivers evidence-based and informed services to families with young children as part of a coordinated continuum of care across multiple types of providers and settings. Unfortunately, recent state investments in CIS have not substantially improved the ability of community-based agencies to retain staff and provide services, even as demand has remained far higher than pre-pandemic levels. The study conducted by Burns and Associates the spring of 2024 analyzed CIS system costs and determined the actual costs were 14% higher than the current reimbursement rate.

The Alliance supports efforts to secure: 1) an FY26 Budget increase of about $1.6m to allow for full funding of the per member/per month rate of $738 identified by the recent study of the true cost of care; 2) inclusion of CIS services in a proposed bill that would require an annual rate study for certain services provided by state contractors, including Designated Agencies; and 3) full funding for the development of CIS data management modules.

Lead Organization: Vermont Early Childhood Advocacy Alliance

Data and Talking Points

• The actual costs of delivering CIS are 14% higher than the current state reimbursement rate.
• As the pandemic’s impacts have continued to play out, for the last three years monthly CIS caseloads have averaged around 1550 statewide, well above the 1450 monthly average in ’21.
• Moving toward predictable annual rate increases would allow CIS providers to strengthen program design and development, as well as staff retention

• A holistic approach to CIS that includes identifying successful practices regionally and sharing them across the state can improve equity and effectiveness of service delivery.

Session Results

Result: No funding secured

Pre-session goal: Secure: 1) an FY26 Budget increase of about $1.6m to allow for full funding of the per member/per month rate of $738 identified by the recent study of the true cost of care; 2) inclusion of CIS services in a proposed bill that would require an annual rate study for certain services provided by state contractors, including Designated Agencies; and 3) full funding for the development of CIS data management modules.

This session saw limited discussion of CIS-related issues. The Governor’s Recommended FY26 Budget contained no funding increase for CIS rates. While a modest CIS funding increase of $450,000 for rate increases was supported by the House Human Services and Senate Health and Welfare Committees, given the relatively challenging budgetary environment the proposal was not supported in either Appropriations Committee. As a result, the Legislature did not include any additional funding for CIS in their FY26 Budget.

The House Human Services Committee was not supportive of including CIS in the annual rate study bill (H. 13), and data management was not considered in either chamber. Challenges for CIS relating to contractual and payment limitations in the state’s Medicaid program were briefly discussed in the House Human Services Committee but did not lead to any concrete action.