Minimum Wage Hike
The current minimum wage is $7.25 an hour for home caregivers, but more than 24 states including, New Jersey, Oregon, and Chicago, have raised their benchmark to $15. Following the House ruling in July 2019, all the states are required to have raised the floor to $15 in the next six years.
The pay hike may be a victory to low-income workers, but it is a big puzzle for agencies regarding reimbursement, hiring, and retention. How do you pay your workers more while keeping your bottom line unaffected?
The seemingly quick and easy answer to that would be raising fees for consumers. But that’s not possible in every case, especially where services are paid by Medicare and Medicaid.