14-04-2025
Cuts to Family Care funds in state budget may mean fewer assisted living options
Unless the Wisconsin State Legislature acts to maintain funding levels of Wisconsin's Medicaid Family Care program, it's very possible the growing number of seniors in need of long-term care services like assisted living will find fewer options in their communities. Family Care is a long-term care program for older adults and adults with disabilities. Part of the program's funding is designated for assisted living facilities to help enhance caregiver wages. Without maintaining current funding levels, assisted living facilities will not be able to provide competitive wages for caregivers. In turn, that will lead to understaffed facilities and operators faced with a choice of either closing their doors or leaving the Family Care program altogether. Thankfully, there have been efforts by members of the legislature and Gov. Tony Evers to address these issues in the past, but additional attention is needed.
In 2017, lawmakers created the Direct Care Workforce Funding Initiative, which provides a funding mechanism directly to caregivers to help address workforce challenges in the state. Funding through this initiative is distributed to assisted living facilities by third-party Managed Care Organizations that use industry metrics to determine funding allocations to individual facilities and ultimately to caregivers. This funding has been a lifeline to help recruit and retain caregivers during a workforce crisis.
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In addition, last October the Department of Health Services established a minimum fee schedule that created 'minimum rates' for assisted living facilities. This program is crucial as it also increased the average wage assumptions in the Family Care program from $13.02 per hour to $15.75 per hour. While this does not recognize the true labor market trends of caregiver starting wages, $17.75 per hour, it is a step in the right direction.
We're fortunate that our state leaders have been responsive in the past to investing in programs supportive of addressing the workforce challenges affecting Wisconsin's long-term health care system. We need them to be responsive again with the next biennial budget.
That's why we're requesting that current funding levels are maintained in the upcoming budget. Those funding levels include $202.7 million in state general purpose revenue over the next biennium for the 'minimum fee schedule.' It is also imperative to maintain current funding of the Direct Care Workforce Funding Initiative — $115 million in state general purpose revenue over the next biennium.
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A decrease in funding means a decrease in wages for caregivers along with rate decreases for facilities, something our industry and the state as a whole cannot afford. In order to effectively staff the anticipated increase in caregiving needs and for assisted living facilities to obtain adequate reimbursement that reflects economic realities and the true cost of care, the Family Care program needs to provide adequate reimbursement.
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Michael Pochowski is president and CEO of the Wisconsin Assisted Living Association.
This article originally appeared on Milwaukee Journal Sentinel: Wisconsin budget must maintain funds for assisted living | Opinion
