Governor Jim Justice announced Thursday that his administration will increase funding for state programs that provide home care for the disabled, seniors and others to address the shortage of skilled workers.

The funds will be used to increase the Medicaid reimbursement rate by 15% for providers who serve vulnerable adults and children in state exemption programsThe money is intended to improve pay for caregivers, who currently earn about $11 an hour, but there are no regulations on how providers spend the money.

A 2023 Opinion poll said West Virginia must increase its reimbursement rate and workers’ pay range to $15.50 to $18.60 an hour; the new rate increase, which takes effect Oct. 1, reflects the study’s recommendations.

“We can give a few more dollars to these great people who are absolutely doing God’s work,” Justice said said“I’m really excited to do this.”

Companies that employ nursing staff explained that the significantly lower wage increase than in neighboring countries was necessary in order to be able to employ and retain their workforce.

Eric Hicks, chairman of the West Virginia chapter of the Home Care Association of America, expects wages for home care workers to increase nationwide, noting that West Virginia has one of the largest elderly populations in the country.

“This investment will allow West Virginia’s seniors and disabled to age with dignity in their own homes,” Hicks said. “Home care saves both families and the state the enormous costs of long-term care facilities, which, according to the Department of Human Services, represent an additional annual risk of over $200 million to Medicaid taxpayers.”

Senior centers across the state that provide care for elderly residents at home through Medicaid also have fought for enough workers. Jennifer Brown, president of the West Virginia Directors of Senior and Community Services, said the rate increase would allow elder care providers to offer competitive salaries.

“This allows our members to continue our important mission of providing care, transportation and meals to West Virginia’s seniors who need help the most,” she said. “Our group of providers offers comprehensive services to seniors, putting their well-being above profit.”

Home care is also a cost-saving measure for the state, as the costs of long-term care, such as Nursing homes and psychiatric facilities are much more expensive

During the special session in May gave DoHS $180 million in a reserve fund that they could use to improve Medicaid reimbursement rates. Lawmakers declined to order the Health Department to spend the money to raise rates after it was revealed that the department had spent money intended for people with disabilities on things like at-home COVID-19 testing.

While the judicial administration delayed effect To increase fees, a residential home for people with disabilities in Martinsburg, many of whom have no family members, announced: its closure At the beginning of the month. Companies that care for seniors at home dismissed employees due to financial losses.

A press release from the Justice Department did not specify how much the rate increase would cost or where the funding would come from. Spokespeople for the Justice Department and the Health Department did not respond to questions about this article by press time.

The Department of Health did not require providers to use a specific portion of the reimbursement amount for employee salary increases.

Mike Folio, legal director of Disability Rights West Virginia, welcomed the rate increase but said it is still millions of dollars below what is needed because the state is infinitely more people with disabilities institutionalized.

“The Department of Health has not increased rates in more than 10 years and the rate increases are not tied to a wage pass-through to guarantee that the increased revenue is used to increase wages for front-line workers,” he said. “Recruitment and retention are necessary to end the skyrocketing involuntary admissions, but the rate increase gives providers free rein to spend the new revenue on management lunches and travel rather than on workers’ wages.”

The state Bureau for Medical Services plans to monitor the impact of the increased rates on workers’ wages and members’ access to services “to determine whether the increased rates are having the desired effect on workforce availability and tenure,” a news release said.