State Medicaid agencies are urging federal regulators to give them more flexibility to determine how home health and other direct care workers are compensated. The Centers for Medicare & Medicaid Services in May proposed that a minimum of 80% of Medicaid payments for homemaker services, home health aide services, and personal care services go directly to pay workers. The remaining 20% goes to pay for overhead and administrative costs. The Medicaid proposed rule aims to increase access to care by addressing home- and community-based care workforce shortages due to low pay.
