Virginia Regulatory Town Hall
Agency
Department of Medical Assistance Services
 
Board
Board of Medical Assistance Services
 
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6/29/21  5:22 pm
Commenter: Heather Falls

Reimbursement rates for Personal Care Agencies
 

As we move into 2022, Personal Care Attendants are getting a much needed pay raise due to the increase in minimum wage. However, agencies who employ said PCAs will have to pocket a large portion of that raise as the upcoming increase in reimbursement rates do not come close to covering the wage increase.  Reimbursement rates will rise a total of 19.7% percent after Jan 1, 2022, yet wage increases will go up 46.8%. If you include the required 10% payroll tax, this puts agencies at a negative of $1.30 per hour.

Personal Care Agencies provide Virginia's elderly and disabled population with the choice to continue living in their homes while receiving the care they need and deserve. It is often preferred and more cost effective that the alternative. Without this option, many Virginians would have no choice but to transfer into nursing homes.

The industry wide standard is 2x the wage base, which will amount to $22.00 as of January 1, 2022. We respectfully request the budget include Medicaid reimbursement rate increases that will fully cover the cost of the minimum wage increase. 

Respectfully,

Heather Falls

Project Manager

HomeRecovery-HomeAid

CommentID: 99305