We request the 10% FMAP for Medicaid HCBS be used for a rate increase for Medicaid Agency Directed Personal Care services as this waiver is currently not adequately funded to enable care providers to pay caregivers an adequate wage to care for the Commonwealth's most vulnerable population.   Agency Directed Personal Care Providers have already incurred the increased cost associated with COVID-19 and the loss of revenue.  This industry continues to be negatively impacted by the minimum wage increase that took effect on May 1st, 2021.

In order to continue providing this valuable, cost effective home based community service to the Commonwealth's most vulnerable population, we recommend Virginia State policy makers do the following:

1. Move the proposed January 1st, 2022 rate increase of 12.5% retroactive to May 1st, 2021 and support this by using designated FMAP funds so as to not increase the state budget from May 1st to December 31st, 2021.
2. Pursue a strategy which will maximize reimbursement for Personal Care Providers which allows us to continue to provide personal care to Medicaid recipients in their homes with trained staff which are compensated at least equal to workers at fast food restaurants and retail stores.
3. The directed payments provision of 42 C.F.R. 438.6 (c) should be envoked to ensure increased funds are indeed distributed to Managed Care and allocated to Personal Care Providers.

Sincerely,

Bill Hurt

VP Operations 

AmeriCare Plus LLC

Past President 

Virginia Association of Personal Care Providers