States would get a 10-percentage-point increase in their federal Medicaid match for two fiscal years to shore up home and community-based services under the HCBS Relief Act, which Sen. Bob Casey of Pennsylvania and 17 Democratic colleagues introduced on Oct. 24, 2023, according to Casey's release.
What the money could pay for
The release said states could use the funds to raise pay for direct care workers, provide benefits such as paid family or sick leave, and cover transportation to and from the homes of people being served. The money could also support family caregivers, pay for recruiting additional workers and buy technology to help deliver services.
The release cited a 2022 report in which more than 70% of providers said they could not fill staffing vacancies, 83% said they were turning away new referrals and 63% said they had discontinued some programs or services.
Why this mattered for providers and DSPs
Many states had used a similar temporary boost from the 2021 American Rescue Plan to fund raises, bonuses and sign-on incentives. Disability Scoop reported that money was set to expire in March 2025, and that ANCOR saw the new bill as a way to extend that lifeline. For DSPs, the question was whether raises paid with temporary funds would last once the money ran out.