Evers announces minimum fee schedule to boost pay for those caring for older adults, those with disabilities

Gov. Tony Evers announced today he’s directing the Department of Health Services to use $258 million in COVID-19 funds to boost wages for direct care workers and providers serving older adults and individuals with disabilities.

The guv’s office said in making the move, Wisconsin is joining 20 other states that have a minimum fee schedule for home and community-based services. It establishes the minimum that managed care organizations must pay providers for certain adult long-term care services and impacts several Medicaid programs.

DHS estimates the move will mean a 15% rate increase for most in-home services and 40.5% for those provided at residential facilities.

“Our healthcare workers have faced significant challenges these past few years, and these investments will go a long way toward helping make sure workers receive the support and fair compensation they deserve,” Evers said. “While this is an important step in helping us be able to recruit, train, and retain talented folks in our healthcare workforce, it’s going to be critical for these investments to continue in our next biennial budget so we can address chronic challenges and continue building a strong, stable healthcare industry for the future.”

According to Evers’ office, the minimum fee schedule creates a list of the lowest prices that managed care organizations can pay for services. In doing so, DHS can require those organizations to pass along the rate increase to providers.

Evers proposed such a move in the 2023-25 state budget, but GOP lawmakers stripped it out of the document. The guv’s office said he doesn’t need the Legislature to sign off on using ARPA funds for the move.

The minimum rates will kick in Oct. 1.