CMS Medicaid Proposals Offer Transparency and Accountability but Could Affect Cash-Strapped Providers

Posted May 3, 2023

Last week, CMS proposed a new rule that would make major changes to the way that home care workers are compensated under Medicaid.  Home-based care stakeholders recognize that the proposal could lead to some improvements, but many are wary of what they view as a one-size-fits-all approach to strengthening home- and community-based services (HCBS).

The biggest provision that CMS floated in its proposal is the requirement that at least 80% of Medicaid payments for personal care, homemaker and home health aide services be directed toward wages for caregivers, instead of other expenses. The move is a way to address workforce challenges.

“The more than 400 pages of proposed rules, certainly, contain a whole lot of regulation and, frankly, improvements to the Medicaid program that do have the potential to assure greater access to Medicaid services for beneficiaries,” Darby Anderson, chief strategy officer for Addus Homecare Corporation (Nasdaq: ADUS), told Home Health Care News. “I do want to acknowledge the efforts by the administration.”

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