The Impact on Medicaid of the ACA Employer Mandate and New Overtime Compensation Rules

Stephen Tweed | January 3, 2014 | Newsroom
Beginning January 2015, providers of Medicaid home care services will face the daunting task of complying with two significant changes in the law that could significantly increase care costs. At the same time, state Medicaid programs and their managed care contractors have not shown any willingness to increase payment rates. The employer mandate under the…

Beginning January 2015, providers of Medicaid home care services will face the daunting task of complying with two significant changes in the law that could significantly increase care costs. At the same time, state Medicaid programs and their managed care contractors have not shown any willingness to increase payment rates.

The employer mandate under the Affordable Care Act may trigger an employer’s obligation to offer health insurance or face a $2000 penalty for each employee working 30 hours or more per week. A recent survey indicates that an estimated 67% of Medicaid home care providers currently do not offer health insurance to personal care aides.

Additionally, the recent changes to the Fair Labor Standards Act rules by the Department of Labor will require overtime compensation to personal care aides working more than 40 hours weekly. Live-in workers will be affected as well when they are employed by a home care company.

The National Council on Medicaid Home Care, an affiliate of the National Association for Home Care & Hospice, has called on the Centers for Medicare and Medicaid Services (CMS) to convene a stakeholder summit to develop reasoned solutions to the challenges facing Medicaid home care under the Affordable Care Act and the recent overtime rule change issued by the Department of Labor.

Does your private duty home care company serve Medicaid clients?  How will the ACA and the DOL Rule affect your business?  How do you plan to deal with these changes?  Give us your comments below.

Stephen Tweed
Stephen Tweed, CSP, began his journey as a business strategist in home health care in 1982. Today, Stephen is among the top thought leaders in Home Care strategy and management. He has worked with top 5% companies from across the US. He is a sought after speaker at from national and state association events.

Related Posts

Extraordinary Transformation: A blueprint for leaders who want to Transform their Organization

June 5, 2024
By Stephen Tweed As a leader in Home Care, are you working on transforming your organization? Are you looking for strategies and insights to grow your business and get ready for the future? I've just finished reading an amazing book by my friend and professional speaking colleague, Dr. Nido Qubein. "Extraordinary Transformation: An Entrepreneurial Blueprint…

Stephen Tweed’s Podcast and Webinar Appearances

May 30, 2024
As a significant Thought Leader in the Home Care industry, Stephen Tweed is frequently invited to be a guest on industry podcasts and webinars. Here are links to some of Stephen's recent appearances. June 2024 - Lead Up Podcast with Mike Harbour - "Legacy Leadership" Stephen Tweed was interviewed by Mike Harbour for the Podcast,…

The Forces and Trends Shaping the Future of Home Care.

May 14, 2024
By Stephen Tweed What will the Home Care Industry look like in five years? Over the past two decades I've been actively engaged in the Home Care Industry, and monitoring the Forces and Trends that are shaping the future of our industry. While much of the growth of Home Care is driven my the entrepreneurial…