Urgent Action Needed Regarding $15 Minimum Wage and Medicaid Reimbursement

NADSA Public Policy Alert

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Dear NADSA Member: Adult Day Services (ADS) and other Home and Community-Based Services (HCBS) advocates have joined forces to urge the Biden administration and Congress to recognize if they raise the federal minimum wage to $15/hr. without a corresponding increase in Medicaid reimbursement rates, it will have a serious negative impact upon HCBS providers. An increase in the federal minimum wage from $7.25 to $15/hr. over four years is tucked into President Biden’s proposed $1.9 trillion plan to address COVID-19 and promote a resurgence of our economy. ADS providers and other HCBS providers are not opposed to an increased minimum wage. They recognize the need to raise wages to retain and attract workers into front line direct consumer services for the elderly and individuals with disabilities. They know this workforce is predominantly women with many living in low-income housing and dependent upon public health care themselves. HCBS providers simply want Congress to understand without a corresponding increase in Medicaid reimbursement rates many providers will not be able to continue to serve Medicaid recipients or continue to operate at all. NADSA is urging Congress to include with any increase in the minimum wage a requirement for State Medicaid programs to, at the minimum, match the increase with a corresponding rate increase for HCBS. NADSA is also urging language be included instructing CMS to require Medicaid Managed Care Organizations (MCOs) to match any minimum wage increase with a corresponding rate increase in their provider contracts. NADSA strongly supports the Partnership for Medicaid Home-Based Care (PMHC) position presented to Congress this past week: “If the minimum wage is increased yet there is a failure to require states to increase reimbursement rates for personal care services covered under Medicaid HCBS programs, it will further limit both access to care delivery and significantly limit Medicaid HCBS providers’ ability to recruit home care workers into the health care workforce.” It is urgent for Adult Day providers to contact their Members of Congress and United States Senators to emphasize the need to couple any increase in minimum wage with a corresponding increase in Medicaid HCBS reimbursement rates. You can use this link to obtain the name, email address, and office telephone numbers for your Representative or copy the following web address into your browser: https://www.house.gov/representatives/find-your-representative. You will need to click on “Contact” to be able to access the email form. Use this link for your Senators and click on “contact” to access the email form or copy the following web address into your browser: https://www.senate.gov/senators/contact *Note: Some states may not have updated with new Member of Congress and Senator information. However, the Capitol Office telephone numbers transfer from past Members and Senators to new ones.

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