The bill mandates the Health Care Authority to establish a minimum Medicaid fee schedule for reimbursing personal care services, setting the rate at no less than $23.50 per hour. It also stipulates that at least seventy percent of the Medicaid reimbursement received by personal care services provider agencies must be allocated for compensating direct care workers. The bill defines key terms such as "compensation," "direct care worker," and "personal care services," ensuring clarity in the implementation of these requirements.

Additionally, the bill includes an appropriation of $20,800,000 from the general fund to the Health Care Authority for the fiscal year 2026. This funding is designated for updating the Medicaid personal care services fee schedule and increasing reimbursement rates, with any unspent funds reverting to the general fund at the end of the fiscal year. The legislation aims to enhance the financial support for direct care workers, thereby improving the quality of personal care services provided to Medicaid recipients.