The bill seeks to improve the home care rate statutes in Washington by revising laws concerning labor and administrative rates for home care agencies. It establishes a new process for determining labor rates based on negotiated wages and benefits for individual providers, ensuring that these funds are exclusively allocated to enhance wages and benefits for direct care workers. The calculation of the labor rate will take into account various factors, including legal employer contributions and adjustments for non-billable work time. Additionally, home care agencies will be required to verify fund expenditures to comply with the new regulations.

Moreover, the bill introduces a rate-setting board that will evaluate and propose changes to the rates paid to consumer-directed employers every even-numbered year. It sets a cap on the administrative rate at 20% of the labor rate and outlines a voting process for rate determination. The bill also allows the department to adjust rates without convening the board, as long as changes do not exceed two percent of the combined rates and are dependent on legislative funding. Key definitions related to labor and administrative rates are clarified, including the inclusion of funds for personal protective equipment in the administrative rate, while the previous requirement for a one-time transfer of funds for unclaimed paid time off has been deleted, indicating a shift in financial management responsibilities.

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