Committee weighs technical fix to home-care rate statutes aimed at ensuring parity for caregivers
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Summary
SB 6019 would update home care rate statutes to require that agency vendor rates include a vendor portion dedicated to wages/benefits, cap administrative rates at 20%, and require DSHS verification; unions and agency providers testified with differing emphases and asked for an updated fiscal note.
The committee heard Senate Bill 6019 on Jan. 22, a proposed substitute intended to clarify how home care agency vendor rates are calculated and to reinforce parity between individual providers and agency employees.
Julie Tran, committee staff, explained the substitute would: define the home care agency vendor rate as the sum of an administrative rate and a vendor portion dedicated to wages, benefits and employer contributions; give DSHS discretion to set the vendor-rate portion in FY2027; and require the vendor portion be carried forward with incremental change beginning FY2028. The substitute also includes a 20% maximum cap for CDE administrative rates and a 20% maximum administrative threshold for home care agency administrative rates. The bill requires DSHS to verify agency spending complies with statutory requirements.
Union representatives and caregiver witnesses advocated for closing loopholes that allow some agencies to spend more on overhead and less on caregiver pay. Agency representatives said the substitute was a consensus product and urged careful implementation. Committee members asked staff about an updated fiscal note, and staff said an updated fiscal note for the proposed substitute was on the way.
Next steps: The committee closed testimony and expects to review an updated fiscal note for the proposed substitute language before further action.
