Iowa 2023-2024 Regular Session

Iowa Senate Bill SF2305

Introduced
2/12/24  
Introduced
2/12/24  

Caption

A bill for an act relating to support of direct care services and the direct care workforce, establishing a state minimum hourly wage for direct care workers under the Medicaid program, and including applicability provisions.

Impact

This bill is expected to have a profound impact on state laws regulating direct care services and the associated workforce. It mandates that Medicaid providers adhere to these minimum wage standards, which could reshape the economic landscape of the direct care industry. The enforcement of minimum wage provisions is contingent upon increased state appropriations, ensuring that Medicaid providers are sufficiently funded to meet the new wage requirements without compromising service quality.

Summary

Senate File 2305 aims to establish a minimum hourly wage for direct care workers employed by Medicaid providers, reflecting an urgent need to enhance compensation for this essential workforce. Beginning July 1, 2025, the minimum wage will be set at $15.00 per hour, with annual increases of $1.00 until it reaches $20.00 by July 1, 2030. This historical legislation addresses longstanding wage disparities within the healthcare sector, aiming to improve working conditions for direct care staff who play a crucial role in supporting individuals with health conditions or disabilities.

Contention

While proponents of SF2305 argue that it will greatly enhance the livelihood of direct care workers and improve service quality, there are potential concerns about the financial burden placed on Medicaid providers. Some stakeholders worry that the requirement for higher wages could lead to increased operational costs, which may be passed on to consumers or result in reduced hiring. Additionally, the bill necessitates rigorous evaluation and recommendations from health services departments to ensure effective implementation and to gauge the long-term effects of the wage increases.

Companion Bills

No companion bills found.

Previously Filed As

IA SF530

A bill for an act relating to support of direct care services and the direct care workforce, establishing a state minimum hourly wage for direct care workers under the Medicaid program, and including a contingent effective date.

IA HF375

A bill for an act establishing a state minimum hourly wage for direct care professionals.

IA HB4110

Relating to establishing a minimum base wage for certain direct care workers under Medicaid.

IA SB1298

Supporting Our Direct Care Workforce and Family Caregivers Act

IA SB01415

An Act Concerning Minimum Wages For Nursing Home Workers Providing Direct Care And Certain Group Home Workers.

IA S690

Support Our Direct Care Workforce

IA HF2199

A bill for an act relating to health care employment agencies, including the statewide maximum allowable charges schedule applicable to nursing services provided by health care employment agency workers, providing penalties, and including effective date and retroactive applicability provisions.(See HF 2391.)

IA HCR72

Memorializes congress and urge the Centers of Medicare and Medicaid Services to increase pay rates for direct care support workers

IA HF2698

A bill for an act relating to and making appropriations for veterans and health and human services, including other related provisions and appropriations including but not limited to the personal needs allowance for certain persons under Medicaid and the state supplementary assistance programs, replacement generation tax revenues, the Medicaid fraud and health care trust funds, the retention of certain revenues by the mental health institutes, the retention of Medicaid eligibility by residents of mental health institutes, the scope of services of the state resource centers, the appropriation of moneys in the juvenile detention home fund, the family investment program account and diversion program, the child support collection services center refund account, the quality assurance assessment payment period, the centers of excellence grant program, an assisted living program revised payment model study, funding for county commissions of veteran affairs, foster care provisions including those relating to a relative or fictive kin, health care employment agencies and health care technology platforms, medical cannabidiol practitioner requirements, nursing facility oversight, and state-funded psychiatry residency and fellowship positions, providing penalties, and including effective date and retroactive applicability provisions. Effective date: 05/09/2024, 07/01/2024. Applicability date: 07/01/2022, 07/01/2023.

IA SF2437

A bill for an act relating to and making appropriations for veterans and health and human services, including other related provisions and appropriations, and including effective date and retroactive applicability provisions.(Formerly SSB 3205.)

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