This bill establishes measures to support direct care services and the workforce in Iowa, including the implementation of a minimum hourly wage for direct care workers under the Medicaid program. Beginning July 1, 2026, the minimum wage for these workers will be set at $15.00, with annual increases of $1.00 until it reaches $20.00 by July 1, 2031. After that date, the wage will be adjusted annually based on the consumer price index. The bill also stipulates that providers cannot reduce the wages of direct care workers who are currently earning above the minimum wage.

Additionally, the bill mandates the Iowa Department of Workforce Development to conduct a wage and benefit survey for direct care workers every odd-numbered year starting January 1, 2027, and requires the Department of Health and Human Services to review and report on the utilization of additional funding for nursing facilities and the impact on direct care worker wages. The findings from these reviews are to be reported to the governor and the general assembly by specified deadlines. The provisions of the bill will take effect contingent upon an increased appropriation for the Medicaid program to support the wage requirements.