Who is responsible for evaluating and complying with operational and technology compliance requirements unique to the state for Brightstar Care's Medicaid participation?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
You are also responsible for purchasing, at your sole expense,
any software necessary to meet state-specific requirements of a state program or segment of business unique to your location and/or state.
- 1.8.2 Upon our or BrightStar Technology's request, you agree to install, update or replace any equipment or software related to the ABS, including any modifications and/or improvements to that System, in such manner as is specified by us or BrightStar Technology from time to time.
4.6 Electronic Visit Verification Fee
Beginning on your participation in certain Medicaid waiver programs, and if your state requires it, you must pay BrightStar Technology, without offset, credit, or deduction of any nature, $1,000 per aggregator for the initial integration and testing of ABS with the state or the third party selected by the state to enable the data required to authorize and approve payments to flow automatically between ABS and your state. Thereafter, unless you engage another Electronic Visit Verification ("EVV") provider that we have approved, you must pay BrightStar Technology, without offset, credit or deduction of any nature, an EVV fee ("EVV Fee") equal to $0.50 per record processed for you in the preceding month. We reserve the right to have BrightStar Technology, or any subsequent designee collect the EVV Fee more frequently than monthly upon 30 days' prior written notice to you. It is your responsibility to understand your state's EVV requirements and notify us with sufficient lead time to integrate with ABS.
You must notify BrightStar Technology no less than 90 days prior to your state's EVV implementation date, and/or 90 days prior to your state's subsequent EVV version upgrades, to allow sufficient time for integrating ABS with your state's EVV implementation and/or updating ABS with your state's EVV Version upgrades. If you fail to notify BrightStar Technology at least 90 days prior to the effective date for your state's EVV implementation or EVV version upgrades, BrightStar Technology may charge you up to an additional $1,000 per aggregator for the initial integration and up to an additional $500 for any subsequent EVV version upgrade.
F. General Matters
Laws and regulations may change at any level of government that increase the scrutiny applied to medical, home care, and/or staffing agencies. As such, the costs of compliance may increase. You are responsible for keeping informed about changes in legislation that may impact the operation of your Agency. We strongly urge you to consult with competent local counsel regarding all of the laws and regulations described above and others that may be applicable to you and your Agency.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 80–81)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, franchisees are responsible for understanding and complying with state-specific operational and technology requirements related to Medicaid participation. Specifically, the franchisee must purchase any software necessary to meet state-specific requirements for state programs or segments of business unique to their location and/or state. This includes understanding and adhering to Electronic Visit Verification (EVV) requirements if the state mandates it for Medicaid waiver programs.
Brightstar Care franchisees are obligated to notify BrightStar Technology no less than 90 days prior to their state's EVV implementation date or any subsequent EVV version upgrades. This advance notice allows sufficient time for integrating the Approved Business System (ABS) with the state's EVV system or updating ABS with the latest EVV version upgrades. Failure to provide timely notification may result in additional charges of up to $1,000 for the initial integration and up to $500 for any subsequent EVV version upgrade.
Furthermore, franchisees are responsible for keeping informed about changes in legislation that may impact their agency's operation and ensuring compliance with all applicable federal, state, and local laws and regulations. Brightstar Care strongly urges franchisees to consult with competent local counsel regarding all applicable laws and regulations. While Brightstar Care provides resources as a reference, the ultimate responsibility for understanding and complying with these requirements rests with the franchisee.