National Council on Medicaid Home Care Sends Letter to State Medicaid Directors on the Potential Effects that the Employer Mandate May Have on Home Care Paid for by Medicaid
NAHC’s affiliated National Council on Medicaid Home Care (The Council) recently sent a letter to all state Medicaid directors on the subject of the Affordable Care Act’s Employer Mandate and its effects on Medicaid. The Council’s Executive Director, William A. Dombi, sent the letter to all state Medicaid Directors to highlight, “a Medicaid impact of the Affordable Care Act that may have been overlooked, but is in need of quick and comprehensive action.”
According to the letter:
“The employer mandate under the ACA poses a serious threat to the future availability and quality of Medicaid home care services. A recently conducted survey of home care companies across the nation shows that well over three-quarters do not offer health insurance to their caregiver employees. As a result, these companies face a significant cost increase for compliant health insurance (approximately $2-3 an hour) or a $2,000 penalty for each full-time employee working 30 hours or more per week. Current Medicaid payment rates are insufficient to cover these added costs...
Medicaid programs have increasingly rebalanced their spending on long-term services and supports towards home care and saved millions of dollars in doing so while enhancing the quality of life for Medicaid beneficiaries. To continue down this successful path, a remedy for the cost increases triggered by the ACA employer mandate must be found, and soon.