Financial Mgmt. for PDS in 1915(c)HCBS Waiver Programs C5684

The Commonwealth of Kentucky Cabinet for Health and Family Services, Department for Medicaid Services (DMS) is requesting proposals for financial management services for Participant-Directed Services in five 1915(c) Home and Community Based Services Medicaid waiver programs, with proposals due November 6, 2026 at 2:00 p.m. Eastern Time under RFP C5684.

DMS intends to contract with a single statewide vendor to replace current legacy vendors (Community Mental Health Centers and Area Development Districts). The scope covers comprehensive financial management services for approximately 15,640 current and future PDS participants across Kentucky, including electronic visit verification, payroll processing, background check administration, tax assistance, and service usage reporting across five waiver programs: Acquired Brain Injury, ABI-Long Term Care, Home and Community Based, Michelle P. Waiver, and Supports for Community Living.

Mandatory eligibility requirements include proof of five years' business licensure, certification of no prior unilateral contract terminations with state or federal government, verification of non-debarment status, and demonstrated experience with financial management services for 1915(c) HCBS waiver programs. Vendors must provide financial capability documentation and submit references from three current state partners. The vendor must sign a Business Associate Agreement, maintain HIPAA confidentiality, comply with state security standards, implement disaster recovery and business continuity plans with a four-hour recovery time objective, and integrate with Kentucky's Online Gateway (KOG/KYID) for single sign-on authentication.

The cost proposal should include a rate per member per month and separate administrative costs for the initial twelve-month period; travel and training costs are not reimbursed. Vendor liability extends to all losses, penalties, and obligations from errors, omissions, fraud, or abuse, with liquidated damages of $500 per business day for failure to meet specified time requirements. Evaluation weights: technical approach 800 points, cost 300 points, potential oral presentations 200 points (1,300 points total); technical proposals scoring below 480 points are eliminated. The anticipated contract start date is February 1, 2027. Electronic proposal submission through Kentucky's Vendor Self Service System is required. The Agency Contact is Arta Halili at arta.halili@ky.gov.