House Finance Committee advances bill to create Home Care Employment Standards advisory board

Representative Mike Prox introduced House Bill 96 on April 15, 2026, proposing the creation of a Home Care Employment Standards Advisory Board to advise the Department of Health on Medicaid personal care payment rates, workforce training and employment conditions. The bill (AS 44.29.900 et seq.) would establish a ten‑member board with six voting and four nonvoting seats appointed by the commissioner, require biannual reports to the commissioner and public publication of those reports, and set meeting frequency and terms of office.

Alexis Rodich, director for Alaska and Montana at the Alaska Caregivers (SEIU 775), provided invited testimony describing a rapidly growing demand for care, workforce shortages in rural areas and the need for more transparency in how Medicaid personal care rates are used. Rodich said HB 96 would create reporting that helps enforce a proposed labor‑rate approach — which she described as directing a large share of the Medicaid personal care agency rate to pay and benefits for direct caregivers, starting at 70% and rising to 80% by 2029 — and would create a stakeholder advisory vehicle to assess whether rates are adequate and how they are spent.

Three caregivers offered public testimony about the practical consequences of low pay and short service windows. David Sutton, a Consumer Direct caregiver, said prior wage increases "really helped" him avoid holding a second job and urged the committee to back pay increases to recruit and retain caregivers. Teresa Heitman of Ketchikan described juggling unpaid family care and paid caregiving work and urged support to keep elders in their homes. Abigail Tekek of Shaktoolik said some visits amount to only minutes for multiple tasks and asked the committee to ensure caregivers are paid fairly so elders can stay in their home communities.

Staff to the sponsor, Riley Nye, walked the committee through proposed statutory language adding new sections to AS 44.29, outlining the board's composition, duties (including advising on Medicaid payment rates and investigating wages and working conditions), appointment procedures, meeting frequency and reporting requirements. Jordan Grant, policy unit manager for the Division of Senior and Disability Services, clarified that an "enrollee or representative of an enrollee" seat could be a person receiving services or a legal decision maker, and that the Office of Rate Review referenced in the bill is a unit within the Department of Health responsible for rate issues.

Nicole Worry Teggeman, Administrative Operations Manager for Senior and Disability Services, presented the fiscal note for HB 96. She said the department had adjusted assumptions away from a prior 50/50 federal match and now estimates costs on the general fund pending federal clarity; the fiscal note includes an additional position in FY27 to support increased reporting and further staffing in FY28–FY32 to manage collection and reporting duties.

Following discussion — including questions from committee members about union involvement, membership numbers and whether appointed seats would represent agencies, workers or clients — the committee set an amendment deadline for Monday, April 20 at 5:00 p.m. Representative Schrage moved a committee substitute (work order 34LS0297T) with attached fiscal notes and individual recommendations; the motion carried and the CS was moved out of House Finance with individual recommendations and the fiscal note attached. The committee will consider amendments and return to the bill as needed.

What happens next: HB 96 now moves forward from the House Finance Committee with a CS and attached fiscal note; members have until April 20 to submit amendments.