The Medicaid program accounts for nearly half (47.4%) of all long-term care spending in the U.S., making it a major source of revenue for long-term care employers. For some, Medicaid is the sole payer. That’s why advocates for increasing direct-care wages and benefits often pursue better reimbursement rates for employers as a way of funding wage increases and benefits.
States that have achieved higher reimbursement rates
- California, where Medicaid rates include funds to cover health insurance benefits for the In-Home Supportive Services program.
- New York, where regulations cover the cost of health benefits for direct support workers working for MR/DD providers.
- Montana. where a new law stipulates that the state pay enhanced Medicaid reimbursement rates to Medicaid-funded home care agencies that provide health insurance.
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