The bill seeks to improve the home care rate statutes in Washington by amending RCW 74.39A.310 and 74.39A.530. It establishes a per-quarter-hour rate for home care services that will be adjusted based on negotiated wages, benefits, and employer contributions. Starting in fiscal year 2027, the Department will determine the portion of the vendor rate allocated to wages and benefits for direct care workers, with increases tied to prior fiscal year amounts. Additionally, funds allocated for health care benefits and training must be exclusively used for those purposes for home care agency workers. The bill also introduces a rate-setting board to evaluate and propose changes to rates for consumer-directed employers, ensuring that administrative rates do not exceed 20% of the total vendor rate.

Moreover, the legislation modifies existing regulations regarding labor and administrative rates, introducing a specific hourly amount within the labor rate for training and related expenses. It grants the department the authority to adjust rates without convening the rate-setting board under certain conditions, such as shifts in required expenditures or compliance with new laws. The bill clarifies definitions related to labor and administrative rates, ensuring that funds for personal protective equipment are included in the administrative rate, and establishes a new definition for the home care agency vendor rate that encompasses both direct care worker compensation and the administrative rate. Overall, these changes aim to enhance operational flexibility for consumer-directed employers while ensuring compliance with financial and regulatory requirements.

Statutes affected:
Original bill: 74.39A.310, 74.39A.530
Substitute bill: 74.39A.310, 74.39A.530