HCAF's policy staff met with officials from the Agency for Health Care Administration (AHCA) yesterday to discuss the upcoming $15 minimum wage mandate for Medicaid workers. During the 2022 legislative session, the Florida Legislature allocated $1 billion in state funding for a $15 minimum wage for Medicaid direct care workers (including 1099 contractors).* The mandate goes into effect on October 1, 2022.

AHCA is in the process of finalizing the updated reimbursement fee schedules for the fee-for-service (FFS) program. The state's new fiscal year begins on July 1, 2022, so Medicaid FFS providers will receive retroactive reimbursement for the new rates once the updated fee schedules are implemented. In relation to the Statewide Medicaid Managed Care (SMMC) program, AHCA will increase Medicaid capitation rates and require health plans to amend their provider contracts in order for Medicaid providers to be able to raise wages for their workers.

In the very near future, AHCA will send a provider alert detailing how the additional funds will reach providers to comply with the mandate. The alert will provide instructions on how to electronically complete and submit the required supplemental wage agreement certifying that targeted Medicaid workers will be paid at least $15 per hour beginning on October 1, 2022. As part of the budget, Medicaid health plans are required to enter into a supplemental wage contract certifying additional state funds will be used to increase payments to providers. The alert will also include a link to a "Florida Medicaid Provider Enhanced Fee Schedules/Minimum Wage" webpage with FAQs similar to the "HCBS Funding Opportunity for Provider Stipend and Retention Payments" webpage.

It's not clear how much Medicaid FFS reimbursement rates will go up, but Medicaid health plans typically meet or come close to those rates in their provider contracts. This process will be closely monitored by HCAF staff, and updates will be shared as they become available.

Related:

• HCAF 2022 Florida Legislative Session Report (March 2022)
• AHCA Medical Care Advisory Committee Meeting Slide Deck (July 2022)

*Direct care workers include home health aides, certified nursing assistants, and personal care assistants (homemaker/companions), but not workers whose role is primarily administrative.