State Wage Pass-Through Legislation: An Analysis

Twenty-one states have implemented "wage pass-through" programs with the stated expectation that doing so will help address the shortage of direct care workers employed by long-term care providers in their states. A wage pass-through is an additional allocation of funds provided through Medicaid reimbursement for the express purpose of increasing compensation for direct care workers. The purpose of this issue brief is to: describe the structure of wage pass-through programs in selected states; summarize what is known about the impact of these programs on the recruitment and retention of direct care workers; and identify key design elements that states should consider if they choose to implement a wage pass-through. [8 PDF pages]