Iowa 2025-2026 Regular Session

Iowa Senate Bill SF530

Introduced
3/5/25  

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 a contingent effective date.

Impact

This bill is designed to enhance the financial stability and working conditions of direct care workers, a critical workforce in the health sector that provides essential services to individuals with disabilities, seniors, and others in need of assistance. By establishing a minimum wage, the bill aims to attract and retain workers in a sector that has faced significant challenges with turnover and workforce shortages. The financial implications for Medicaid providers will depend on the state's ability to allocate adequate funding to support these wage increases, thereby influencing the sustainability of caregiver services.

Summary

Senate File 530 (SF530) is a legislative proposal aimed at establishing support for direct care services and the direct care workforce in Iowa. A significant aspect of the bill is the mandate for Medicaid providers to comply with minimum wage requirements for direct care workers. The bill stipulates a phased approach starting with a minimum hourly wage of $15.00 beginning July 1, 2026, increasing by $1.00 each year until it reaches $20.00 by 2031. Additionally, any future adjustments will be based on the consumer price index, ensuring that wages keep pace with inflation.

Contention

Debates surrounding SF530 could reflect broader concerns regarding funding for Medicaid programs and the balance between ensuring fair wages for direct care workers and the fiscal responsibilities of the state. Stakeholders may express differing views on the sufficiency of state appropriations, the anticipated impact on service delivery, and the administrative feasibility of implementing these wage requirements. Many in the healthcare field advocate for the bill, highlighting it as a critical investment in the quality of care, while fiscal conservatives may raise concerns about funding mechanisms and state budget limitations.

Companion Bills

No companion bills found.

Previously Filed As

IA SF2305

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.

IA SF514

A bill for an act relating to the organization, structure, and functions of state government, providing for salaries of appointed state officers, providing for penalties, making appropriations, providing Code editor directives and transition provisions, and including applicability and effective date provisions. (Formerly SSB 1123.) Contingent effective date. Applicability date: Enactment, 07/01/2023.

IA HF2391

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 provisions.(Formerly HF 2199.)

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 SSB1123

A bill for an act relating to the organization, structure, and functions of state government, providing for salaries of appointed state officers, providing for confirmation of appointments, providing for penalties, making appropriations, providing Code editor directives and transition provisions, and including applicability and effective date provisions.(See SF 514.)

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 SF2137

A bill for an act relating to provision of the state family planning services under the Medicaid program, and including effective date and repeal provisions.

IA SSB3114

A bill for an act relating to the more options for maternal support program, and including effective date and retroactive applicability provisions.(See SF 2252.)

IA HSB542

A bill for an act relating to education, including modifying provisions related to the number of area education agencies in this state, the duties and powers of area education agencies, area education agency boards of directors, the department of administrative services, the director of the department of education, the division of special education within the department of education, the services provided by area education agencies, area education agency funding, the calculation of the teacher salary supplement district cost per pupil, and minimum teacher salaries, and including transition, effective date, and applicability provisions.

IA SSB3073

A bill for an act relating to education, including modifying provisions related to the number of area education agencies in this state, the duties and powers of area education agencies, area education agency boards of directors, the department of administrative services, the director of the department of education, the division of special education within the department of education, the services provided by area education agencies, area education agency funding, the calculation of the teacher salary supplement district cost per pupil, and minimum teacher salaries, and including transition, effective date, and applicability provisions.(See SF 2386.)

Similar Bills

IA SF2305

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.

AR SB50

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MS SB2715

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GA HB62

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