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Legislature’s Budget-Writing Committee Approves 10% Medicaid Rate Increase for Home Health Care Skilled Nursing

June 17, 2021 9:41 AM | WiAHC Administrator (Administrator)

The power of advocacy can help make change happen. That is something we often hear, but seldom see in action. Fortunately, the entire WiAHC membership can now say they have witnessed firsthand the benefits of a comprehensive advocacy effort to deliver a long-overdue policy change to boost the skilled home health care industry in Wisconsin.

On Tuesday, June 15, the state Legislature’s powerful budget-writing committee, which is tasked with shaping the state’s two-year budget, voted to include a provision in the budget to increase Medicaid rates for home health care skilled nursing services by 10 percent. WiAHC has been advocating for this important change for nearly two years.

The budget bill must still be approved by the full Legislature and signed into law by Gov. Tony Evers, but approval of the increase by the budget committee was an extremely important step, as the budget created by the committee is highly likely to be adopted by the Legislature with minimal changes.

Due to in part to current Medicaid rates in Wisconsin, home health agencies struggle to attract sufficient nursing workforce. As growth in the utilization of home health care services continue, today’s workforce challenges will only worsen without a rate increase. The committee’s actions mark a significant step forward in addressing this issue.

“The skilled home health care industry is very grateful for the budget committee’s commitment to the services we provide and the patients we serve,” said WiAHC Board Chair Lisa Kirker. “We specifically want to thank Senator Mary Felzkowski (R-Irma) and Representative Amy Loudenbeck (R-Clinton) for their leadership on this issue. Their work was invaluable in ensuring a rate increase passed the committee.”

Under the provision approved by the budget committee, the state will provide more than $1.4 million in additional state funding – along with the federal match – over the upcoming two-year budget cycle to increase the Medicaid rate paid for nursing care in home health agencies. The rate boost would begin on January 1, 2022. The additional funding will support care offered by licensed practical nurses, registered nurses, and nurse practitioners in home health agencies.

The WiAHC Government Affairs Team will continue to work with lawmakers and the Governor’s office throughout the remainder of the state budget process to help make sure the provision is ultimately signed into law.  

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