2021 Special Session I

Budget Amendments - HB1800 (Floor Approved)

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Rate Increase for Personal Care Services

Item 313 #11h

Item 313 #11h

First Year - FY2021 Second Year - FY2022
Health and Human Resources
Department of Medical Assistance Services FY2021 $0 FY2022 $36,694,163 GF
FY2021 $0 FY2022 $38,138,845 NGF

Page 345, line 39, strike "$17,494,923,315" and insert "$17,569,756,323".

Page 376, line 3, strike "two" and insert "seven".

Page 376, after line, 5, insert:

"3. Effective January 1, 2022, the Department of Medical Assistance Services (DMAS) shall increase the average reimbursement rate for personal care, respite and companionship services provided in waiver programs to ensure compliance with the state's minimum wage, pursuant to Chapters 1146 and 1204 of the Code of Virginia. The department shall have the authority to implement these changes prior to completion of any regulatory process undertaken in order to effect such change."


(This amendment adds $36.7 million from the general fund and $38.1 million in federal Medicaid matching funds the second year to increase provider rates for personal care, respite care, and companionship services provided in Medicaid waiver programs by five percent effective July 1, 2021. This rate increase will supplement those increases provided in Chapter 1289, 2020 Acts of Assembly, which provided a five percent increase beginning July 1, 2020 and a scheduled two percent increase on July 1, 2021, bringing the total increase to seven percent in fiscal year 2022. Language is also added to provide the agency with the authority to increase these rates effective January 1, 2022 to comply with requirements to raise the minimum wage to $11.00 per hour, pursuant to legislation adopted by the 2020 General Assembly.)