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Providers warn proposed waiver cuts and rate caps would worsen workforce crisis and reduce services
Summary
Residential and waiver service providers, unions and disability advocates told the committee the governor’s proposal to cap inflation adjustments, limit rate exceptions and reduce utilization factors would destabilize disability waiver services and threaten access for people with disabilities, especially in rural and BIPOC communities.
Representatives of disability service providers, provider associations and a home-care union told the House Health and Human Services Finance Policy Committee that several elements of Gov. Tim Walz’s Medicaid and waiver proposals would reduce provider revenue, deepen workforce shortages and shrink service access.
"This proposal will exacerbate an already dire workforce crisis," Johnny Tivetz, policy manager for ARM, told the committee, urging lawmakers to reject a proposal to cap inflationary adjustments at 2% and other proposed reductions. "Direct support professionals...are already underpaid," he said, adding that the administration’s $1.3 billion in four-year reductions to waiver…
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