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Industry InsightsJanuary 28, 20267 min read

SB 5394: What Washington's DDA No-Paid Services Changes Mean for Families

Ibrahim E.

CareCade Foundation

SB 5394: What Washington's DDA No-Paid Services Changes Mean for Families

What Is SB 5394?

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Senate Bill 5394, signed into law as Chapter 337, 2025 Laws, changes how the Developmental Disabilities Administration (DDA) manages its "no-paid services" caseload.

The law, effective July 27, 2025, permits DDA to provide only limited case resource management to clients on the no-paid services caseload and prohibits case management for inactive clients on that caseload.

Sponsored by Senators Robinson and Nobles at the request of the Office of Financial Management, the bill represents a significant policy shift for thousands of Washington families.

Understanding the No-Paid Services Caseload

Who's on It

The no-paid services (NPS) caseload includes individuals who:

  • Are DDA-eligible (have a qualifying developmental disability)
  • Are not currently receiving paid DDA services
  • May be waiting for services
  • May not currently need services
  • May be receiving support through other means (family, other programs)

According to legislative documents, the no-paid services caseload includes thousands of Washington residents with developmental disabilities.

Why It Exists

The NPS caseload exists because:

  • Eligibility and service receipt are separate
  • Not everyone eligible immediately needs or receives services
  • Resources limit how many people can receive services
  • Life circumstances change (family support, other programs, changing needs)

Case Management Role

Previously, case resource managers provided ongoing outreach and support to NPS clients:

  • Regular check-ins to assess changing needs
  • Information about available services and resources
  • Assistance with accessing services when needed
  • Connection to community resources

What Changed

Limited Case Management

Under SB 5394, DDA may provide clients on the NPS caseload with limited case resource management services. The case resource manager's duties include:

  • Responding to clients who reach out
  • Discussing service needs when contacted
  • Explaining service options available through DSHS or community resources

The key word is "limited"—and the initiative comes from the client, not the agency.

Inactive Client Prohibition

The law prohibits case resource management services for "inactive clients" on the no-paid services caseload. The definition of "inactive" determines who loses access to case management entirely.

The Debate

Proponents' Arguments

Those who supported SB 5394 argued:

"Case management services for the no-paid services caseload was added several years ago, but additional contacts generated by the case managers did not result in appreciable changes to the list."

In other words:

  • Outreach wasn't effectively moving people to services
  • Resources spent on outreach could be used elsewhere
  • People who need services should reach out
  • Administrative burden without corresponding benefit

Opponents' Arguments

Those who opposed SB 5394 argued:

"The no-paid services caseload was never intended to be without a case manager and has morphed into a holding tank for unserved, newly eligible children."

Their concerns:

  • Families can't navigate the system without case manager help
  • DDA is failing its role by not proactively connecting eligible people to services
  • Reducing case managers makes it harder to access services, not easier
  • Children are most affected—newly eligible kids whose families don't know the system

The Core Tension

The debate reflects a fundamental tension:

PerspectiveView
Resource managementLimited resources should go to those actively seeking services
Access advocacyProactive outreach is necessary because families don't know what's available
EfficiencyOutreach that doesn't change outcomes isn't valuable
EquityFamilies with fewer resources need more help navigating systems

Impact on Families

If You're on the NPS Caseload

What this means for you:

  • You must be proactive: DDA won't reach out to check on you
  • Services are still available: Eligibility hasn't changed
  • You can still contact DDA: Call your regional office or case resource manager
  • Keep your information current: Ensure DDA can reach you if you contact them

If You're Newly Eligible

For families with children newly determined eligible:

If You're a Provider

For agencies serving or hoping to serve these families:

  • Families may need more help: Those who don't know the system will need guidance
  • Referral sources may shift: Case managers won't be proactively connecting families
  • Advocacy role increases: Helping families understand options becomes more important
  • Community partnerships matter: Organizations that can fill the outreach gap

Resources for Navigation

DDA Contact Information

  • DDA Headquarters: 360-725-3413
  • Regional Offices: Find your local DDA office
  • Services and Information Request Form: Available on DSHS website

Advocacy Organizations

Understanding Options

The Broader Context

SB 5394 exists within larger dynamics:

Budget Pressure

Washington faces a $2.3 billion budget deficit. Reducing case management for the NPS caseload saves administrative costs—though the savings amount relative to the impact is debated.

DSHS Restructuring

The creation of HCLA reorganizes how community services are delivered. Policy changes like SB 5394 fit within broader operational evolution.

Federal Uncertainty

With Medicaid funding under pressure federally, states are making difficult decisions about where to allocate limited resources.

Workforce Shortages

Even when services are available, provider capacity limits affect how many people can actually receive services. The NPS caseload exists partly because services aren't available for everyone who's eligible.

What Advocates Are Doing

Disability advocacy organizations continue to:

  • Monitor implementation of SB 5394
  • Advocate for resources to serve the NPS caseload
  • Provide direct assistance to families navigating the system
  • Push for policy changes that increase access

If you're concerned about the impact of SB 5394, connecting with these organizations amplifies your voice.

How CareCade Helps

For providers serving families who've navigated the system to receive services, CareCade supports excellent care delivery.

Service Delivery

Once families access services, we help providers deliver:

Family Engagement

Keep families informed and involved:

Quality Assurance

Document the value of services:

  • Outcome tracking: Evidence of service impact
  • Compliance records: Audit-ready documentation
  • DSHS reporting: Meet reporting requirements

The Path Forward

SB 5394 is law. For families on the no-paid services caseload, the practical reality is:

  1. You must be your own advocate (or find advocates)
  2. Information is available if you seek it
  3. Services exist for those who navigate successfully
  4. Support organizations can help bridge the gap case managers used to fill

For the system as a whole, the question remains: Is limiting outreach to the NPS caseload a reasonable resource allocation, or does it effectively prevent eligible individuals from accessing services they need?

That debate will continue—and your voice in it matters.

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