The bill seeks to improve the compensation framework for home care agency workers in Washington by amending existing statutes related to home care rates. It establishes a per-quarter-hour wage and benefits amount determined by the department, taking into account factors such as negotiated compensation changes and average costs for Medicaid-contracted agencies. Starting in fiscal year 2027, the department will allocate a portion of the vendor rate specifically for wages and benefits for direct care workers, with planned incremental increases in subsequent years. Additionally, a rate-setting board will be created to assess and recommend changes to rates for consumer-directed employers, considering health and training benefits while imposing limits on administrative cost allocations.

Furthermore, the bill modifies the labor rate structure for consumer-directed employers by specifying hourly amounts for health benefits and training-related expenses for individual providers. It allows the department to adjust labor and administrative rates without the rate-setting board's involvement when necessary due to changes in expenditures or compliance with new regulations. The legislation also clarifies definitions related to labor and administrative rates, ensuring that funds for personal protective equipment are included in the administrative rate, and emphasizes the importance of these rates in supporting the financial stability of consumer-directed employers while prioritizing the welfare of individual providers.

Statutes affected:
Original bill: 74.39A.310, 74.39A.530
Substitute bill: 74.39A.310, 74.39A.530
Engrossed substitute: 74.39A.310, 74.39A.530
Bill as passed Legislature: 74.39A.310, 74.39A.530
Session law: 74.39A.310, 74.39A.530