New CMS Rule Requires 80% Of Medicaid HCBS Payments Go To Direct Care Compensation

The Centers for Medicare & Medicaid Services (CMS) finalized a new rule that requires at least 80% of state Medicaid payments to home- and community-based services (HCBS) provider organizations be used to directly compensate direct care workers. The rule applies to homemaker services, home health aide services, and personal care services. The 80% requirement does not apply to habilitation services. States will be permitted to adopt a separate percentage for small provider organizations and/or a hardship exemption, based on a transparent process and objective criteria. States will also be required to report on a set of nationally standardized . . .