Federal PolicyState Medicaid Director Letter
CMS Issues New Direct Care Worker Pay Reporting Rules for HCBS
CMS released State Medicaid Director letter SMD 26-005, establishing reporting requirements for direct care worker compensation tied to home and community-based services payment adequacy. State Medicaid agencies administering HCBS programs must comply with the new reporting obligations, which are intended to give CMS visibility into whether payment rates translate into adequate direct care worker wages. The letter directs states on what data to collect and submit regarding worker compensation. States should review the guidance to confirm their data systems and provider reporting processes can meet the new requirements.
Why it mattersState Medicaid agencies and HCBS providers must update data collection and reporting systems to comply or risk federal compliance findings tied to payment adequacy oversight.