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Senate committee reviews DHS plan to raise self-direction pay to $13.32 an hour
Summary
The Senate Public Health committee heard DHS explain a new methodology that would raise the self-direction hourly budget from $10.55 to $13.32 by tying it to the personal-care rate and removing agency administrative overhead; members pressed DHS for the math and asked for supporting spreadsheets.
The Senate Public Health, Welfare and Labor Committee on Monday reviewed a Department of Human Services proposal to change how budgets are calculated for the self-direction program, which allows Medicaid beneficiaries to hire their own caregivers.
Gerald (Jerry) Sheram of DHS said the agency began its calculation with a $10.91 base and added a 16% benefit load, producing a proposed self-direction hourly budget of $13.32. "The current hourly rate is $10.55," Sheram told members. Under the proposed methodology, DHS would derive the self-direction budget as a higher percentage of the personal-care rate by removing the administrative overhead an agency would normally incur.
DHS officials said the change aims to make self-direction a viable option for beneficiaries and to accommodate a pending minimum-wage increase. "This goal was to first tie it to the personal care rate so we can have automatic appropriate updates based on rate reviews," Sheram said. He offered to distribute the underlying spreadsheet used in the calculation.
Several lawmakers sought more detail about the math. Representative Wardlaw asked where the "73% hourly rate" in DHS materials came from; DHS said it reflects the calculation flow rather than a single subtraction of a 37% administrative load. Members also noted that providers had proposed a larger overhead figure (a 41% load) and pressed DHS to produce the data behind both estimates.
Senators and representatives also raised concerns about whether the proposed self-direction budget would keep attendant pay above minimum wage when the state's minimum increases to $11 on Jan. 1. DHS said that at the proposed $13.32 rate, attendants under self-direction would be above the upcoming minimum-wage level.
DHS committed to provide the committee with the methodology spreadsheet and related handouts. The committee reviewed the rule and agreed to carry some DHS items over to a follow-up meeting to allow more staff and providers to attend in person.
