On behalf of all Agency Directed care providers throughout Virginia and the over 30,000 Aides who provide critical community-based care to Medicaid recipients who are elderly or disabled, it is absolutely necessary to increase reimbursement in order to attract and retain competent personnel.  Making a livable wage available to staff is key to keeping Virginians in their homes

Personal Care agencies have struggled with significant increased costs as highlighted through the Medicaid rate schedule: The minimum wage increase that went into effect May 1, 2021, and next January 1, 2022, will significantly increase our costs without an equal increase in reimbursement. 

While grateful for the significant reimbursement rate increase provided by the General Assembly which translated into a $0.92 increase in the reimbursement rate on May 1^st and will add an additional $1.91 increase on January 1^st.   (19.7% total increase).   However, the rate increases do not come close to fully reimbursing personal care agencies for the increased cost of minimum wage – which increased $2.25 per hour (or 31% on May 1, 2021), and will increase an additional 15.8% on January 1, 2022, (representing a total increase of 46.8%).  Including 10% for payroll taxes that will also be due, we will be in a negative funding position of $1.30 per hour of service provided.  There are several more minimum wage cost increase scheduled later as well.  The minimum wage increases exclude other increases in costs of responding to COVID-19, EVV, supervision, etc.

 Without additional funding to respond to minimum wage increases, Virginia’s Medicaid recipients of personal care services may lose the choice of staying in their homes.

Without personal care agencies providing care in a Medicaid recipient’s home, many of these vulnerable Virginians would have no choice but to be institutionalized in a nursing home.  They would have no choice and no realistic living arrangements available.

Personal care attendants (PCAs) are a key component of the Commonwealth’s approach to ensure elderly and disabled Medicaid recipients as much as possible continue to receive care in their homes.  It is both cost effective and preferred by the recipients.  We respectfully request the budget includes Medicaid reimbursement rate increase that fully covers the cost of the minimum wage increases.  An industrywide standard frequently used is two times (2x) the wage base. Which would be $19.00 by May 1, and 22.00 by January 1, 2022. 

Respectfully submitted,

Tim Petry

President 

Home Recovery