Transit director warns managed‑care changes could cut half‑million in reimbursements; board weighs raising shop rate

Morrow County's transit director told commissioners May 20 that rule interpretations by managed‑care programs could strip a substantial share of recent non‑emergency Medicaid reimbursements and that the county must consider increasing its shop labor billing rate to meet state technical requirements.

The director said the county received roughly $498,000 in non‑emergency Medicaid transportation reimbursements in calendar 2025 and warned that managed‑care plans’ handling of trips over 30 miles could reallocate that business to other vendors. "If we were to take them away from those going over 30 miles and tell them to use managed care ... they're going to light our phones up," the director said, describing earlier county experiences when managed‑care arrangements left clients without timely transport.

To comply with ODOT and TAR reviewers and fully recover wages and fringes, staff recommended increasing the shop billing rate from $55 to $115 per hour (calculated using two mechanics' salaries and fringe costs over a six‑month sample). The director said raising the rate and applying a recent $7,000-ish increase in capitalized maintenance funding should help avoid a negative capitalized maintenance balance and potential findings on the next technical assistance review.

The director also flagged transit finances and capital planning: a $930,000 transit reserve fund, a $3.4 million planned building and a $685,000 match component. He said using reserves to cover shortfalls would be possible but could deplete the cushion over time, and that commissioners should be aware of financial exposure if Medicaid reimbursements decline.

Operational issues raised included staff turnover, difficulty recruiting a fiscal employee, purchase of a VIP reporting system (about $11,000) to replace an error‑prone Excel reporting process, and questions about whether transit would need to become a Medicaid‑billable entity to continue some contracts. The director recommended the board study the rate change and watch for managed‑care guidance before making final decisions.

Commissioners asked clarifying questions about payroll math, service coverage, and alternatives; the board agreed to study the proposal further rather than approve an immediate rate change. No binding vote on the rate was taken at the meeting.