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Adult Foster Home Provider Rate Change

Provider rate change

A new model for calculating rates paid to Adult Foster Home operators will go into effect on Jan. 1, 2026. With the new model, most providers can expect to see a rate increase. No providers will see a rate decrease because of this rate change.

The 2025 Oregon Legislature directed ODHS to adopt a new model for calculating rates based on residents’ needs. The requirements are outlined in Senate Bill 5526 and apply to Adult Foster Homes licensed by the Office of Aging and People with Disabilities (APD).

The new rate model will:

  • Increase reimbursements for APD-licensed Adult Foster Homes so rates are comparable to homes licensed by other state programs.
  • Provide a person-centered approach to rate-setting rather than the previous one-size-fits-all approach.
  • Simplify the rates so providers know what to expect.
  • Reduce the need for providers to request exceptional payments to fund additional staff required to meet residents’ needs.​

The model will use five tiers, each with its own range of reimbursement rates. Case managers will assign points to residents based on their assessed level of need in every activity of daily living. People with higher care needs will be assigned to a higher tier with higher reimbursement rates.

Each rate tier will require the Adult Foster Home to have a specific staffing level. Exceptions will be available for residents whose needs require staffing beyond what is specified in the rate tier.

​This table describes the new rates.

Tier
Jan. 1, 2026
Jan. 1, 2027
Staffing hours​
Tier 1​
$2,332​
$2,477​
0​
​Tier 2​
$3,327​
$4,052​
​​2​
Tier 3​
$3,863​
$4,704​
4
Tier 4​
$5,916​
$7,205​
8
Tier 5
$7,773​
$9,467​​
10
​

​The tiered payment structure will go into effect Jan. 1, 2026, with the first payments of the new rates being paid out in February.

APD worked with the Service Employees International Union (SEIU) to negotiate the new rates for each tier. The new rates were also be informed by the 2024 APD-ODDS Rate and Wage study.

​Reach out to the Adult Foster Home licensing team at apd.afhteam@odhs.oregon.gov​.

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