State Policy · WA
Washington Proposes Wage Freeze for 80,000 Medicaid Home Care Workers
Washington state and SEIU 775 are negotiating contracts covering approximately 80,000 Medicaid-funded home care workers. The state proposed freezing wages at current levels through fiscal year 2028, maintaining the $37.42 per hour Medicaid reimbursement rate that pays workers $22-25 per hour, citing anticipated budget shortfalls ahead of the 2027 legislative session. SEIU 775 dropped its initial request from a 12% two-year increase to 3% in year one and 5% in year two, warning a wage freeze will reduce caregiver availability for Medicaid long-term services and supports beneficiaries and push more individuals from home care to higher-cost nursing facilities.
Why it mattersWage freezes in Washington's Medicaid home care program could trigger workforce shortages that increase institutional care utilization and drive up state costs, while setting a precedent for other states facing similar budget pressures in LTSS programs.