Hearing on SB 6,019 Focuses on Capping Administrative Share and Ensuring Medicaid Home-Care Dollars Reach Caregivers
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Summary
SB 6,019 would define and cap the administrative portion of home-care agency vendor rates at 20% and require DSHS verification that agency spending aligns with the designated portions; supporters said it will ensure more Medicaid-paid dollars reach direct caregivers.
The committee received a staff briefing and public testimony on gross substitute Senate Bill 6,019, which revises how home-care agency vendor rates are calculated and adds verification and spending restrictions to ensure parity between individual providers and agency providers.
Jackie Cobble, staff to the committee, said the bill defines the home care agency vendor rate as the sum of an administrative rate and the portion dedicated to wages, benefits, and employer contributions for direct-care workers. The bill caps administrative rates at 20% of the total vendor rate and directs DSHS to verify the use of each portion beginning July 1, 2027. DSHS told staff it expects no fiscal impact for FY2027 because FY2027 rates have already been set.
Dimas Nistorenko (representing SAU 775) testified the bill closes a loophole allowing some agencies to divert Medicaid funds away from caregiver pay, and he summarized the bill’s allocation target: “It ensures that 80% of the total Medicaid rate goes directly to caregivers, limiting administrative overhead and profit to more than 20%.”
Home-care worker Daryl Johnson, who said he has worked for one agency for 20 years, testified in support and described the challenge of low wages for direct care work, urging the committee to pass the bill to improve caregiver compensation.
The committee concluded the public hearing; no vote was taken in this session.