State Policy
States Consider Wage Cuts for Family Caregivers of People with Disabilities
Multiple states are considering significant wage reductions for family caregivers who provide care to people with disabilities through Medicaid programs. These proposed cuts respond to state budget pressures following recent Medicaid funding reductions. The wage cuts would directly affect family members who serve as paid caregivers under state long-term services and supports programs. The changes threaten the financial stability of thousands of family caregivers who depend on these wages while providing essential home and community-based services.
Why it mattersWage cuts to family caregivers could destabilize HCBS provider networks, increase institutional care costs, and trigger managed care contract renegotiations if states reduce LTSS capitation rates or shift cost risk to MCOs.