[Updated] CMS Proposes New Rule Requiring At Least 80% of HCBS Medicaid Payments To Go Toward Worker Compensation

By Robert Holly: Complete Post through this link…

The U.S. Centers for Medicare & Medicaid Services (CMS) on Thursday announced a new proposed rule that would, among its provisions, establish a strict requirement for the amount of Medicaid payment going toward home care worker compensation.

Specifically, the proposed rule from CMS would require that at least 80% of Medicaid payments for personal care, homemaker and home health aide services be spent on compensation for direct care workers. That’s opposed to expenses such as “administrative overhead or profit,” according to the agency.

“If adopted as proposed, the rules would establish historic national standards for access to care regardless of whether that care is provided through managed care plans or directly by states through fee-for-service (FFS),” the CMS announcement explains. “Specifically, they would establish access standards through Medicaid or CHIP managed care plans, as well as transparency for Medicaid payment rates to providers, including hourly rates and compensation for certain home care and other direct care workers.”

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