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Lawmakers press Department on direct‑care workforce, rate increases and progress on KW lawsuit resource tool
Summary
Committee members asked how rate increases and hospital assessment proceeds are translating into direct‑care wages and staffing; deputy director Juliette Sharon discussed audits, a follow‑up cost survey and development of a new resource‑allocation tool tied to the KW lawsuit settlement
Senators and representatives pressed Department of Health and Welfare leadership on Feb. 26 about whether recent provider rate increases are reaching direct‑care workers and how the department is tracking those outcomes.
Deputy Director Juliette Sharon said a prior provider audit found a small share of funds flowed directly to direct‑care staff and that the department conducted a follow‑up cost survey in 2025 to examine the issue. “We are still concerned about if those funds are truly being driven down to direct care staff,” Sharon told the committee.
Sharon said the department is evaluating whether it has authority to adopt more stringent guidelines to ensure funds designated for wage increases reach direct‑care workers, while noting concerns about not unduly burdening small business owners who operate many provider agencies.
On the KW lawsuit, Sharon said the department is negotiating a new resource allocation tool as part of the settlement and requested ongoing funds (the transcript cited $200,000 ongoing) to maintain contractual work through Human Services Research Institute (HSRI) and to pay attorney fees required by the federal district court order. The department said it will keep the legislature apprised of progress.
Senator Wintrow and others asked whether suspending family personal care services (a proposed amendment to CMS) would affect workforce availability. Sharon said the department has proposed suspending the family personal care option and that families trained as caregivers can still provide services to other community members; the department will monitor access and is prepared to return to the legislature if problems arise.
Committee members asked for additional reports on how rate increases are affecting staffing, and the department agreed to provide follow‑up materials including the cost survey results and an update on KW implementation.
