This bill establishes a minimum hourly wage of $15.20 for home health aides under the Medicaid program for the fiscal year 2026-2027. It mandates that the Iowa Department of Health and Human Services (HHS) continue to use the Medicare low utilization payment adjustment (LUPA) methodology, incorporating state geographic wage adjustments, while specifically adjusting the labor portion and the adjusted wage rate to meet the new minimum wage requirement.

Additionally, the bill includes an appropriation from the state's general fund to ensure that HHS has sufficient funds to reimburse home health aides providing services under the Medicaid program at the established minimum wage. This financial support aims to enhance compensation for home health aides, thereby improving the quality of care provided to individuals receiving home health services.