Which statement describes how the CSW is paid under the DDA exception?

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Multiple Choice

Which statement describes how the CSW is paid under the DDA exception?

Under this arrangement, the FEAgency (the funding entity) handles paying the CSW directly, separate from the DDA’s payment stream. The FEAgency acts as the payroll intermediary, contracting with the CSW, issuing pay, and handling taxes and benefits, while the DDA funds the participant’s approved supports but does not issue payments to the CSW itself. This separation keeps payroll organized and compliant, and it aligns with how self-directed services are managed when using the DDA exception: the participant directs who provides supports, and the FEAgency takes care of compensation. Other options don’t fit because the payment responsibility isn’t placed with the DDA, the participant, or Medicaid under this exception—the designated path is for the FEAgency to pay the CSW directly.

Under this arrangement, the FEAgency (the funding entity) handles paying the CSW directly, separate from the DDA’s payment stream. The FEAgency acts as the payroll intermediary, contracting with the CSW, issuing pay, and handling taxes and benefits, while the DDA funds the participant’s approved supports but does not issue payments to the CSW itself. This separation keeps payroll organized and compliant, and it aligns with how self-directed services are managed when using the DDA exception: the participant directs who provides supports, and the FEAgency takes care of compensation.

Other options don’t fit because the payment responsibility isn’t placed with the DDA, the participant, or Medicaid under this exception—the designated path is for the FEAgency to pay the CSW directly.

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