Legislature expected to approve major pay increase for personal care assistants

Legislature works to address shortage of personal care assistants

Legislature works to address shortage of personal care assistants

Lawmakers are working to address a critical shortage of personal care assistants (PCAs) with just days left in the legislative session. PCAs provide wound care, help people get dressed, bathe and eat, assist with transportation and other services.

Andrea Hanek cares for her two sons with autism. One of her sons also has encephalopathy.

“Everything you do on a daily basis that you don’t think about much, he needs help with,” Hanek explained. “I love working with my kids but they’re 10 and 11 and it’s time they had developmentally appropriate caregivers.”

She explained she stepped into the role after being unable to find a personal care assistant.

Earlier this year, Hanek was part of the SEIU team that negotiated a new contract with the state to increase PCA pay about 25% in an effort to address the shortage. The agreement is set to be ratified by the State Legislature this session.

The contract would increase the minimum hourly wage for providers from $15.25 to $19 dollars starting January 1, 2024. The following year it would increase to $20/hour.

“This is actually life-changing,” said Hanek. “This could really help my sons and clients around the state to have the care that they really, really need and deserve and have been waiting for a really long time.”

While it’s welcomed by both those providing care and PCA agencies, there have been concerns about how the additional cost would be covered.

The Governor’s budget proposal suggested increasing reimbursement rates for PCA programs by 16.88% effective 2024 and 21.98% effective 2025. This was included in the Senate version.

About 60% of 37 PCA Choice agencies who responded to an April survey said they would close their doors or stop providing services if that legislation passed, which could affect 2,000 Minnesotans. The survey was conducted by the Minnesota First Provider Alliance and Minnesota Home Care Association.

“It’s caused a lot of angst in the community that are really caring about the people they’re serving,” said Kathy Messerli, the executive director of the Minnesota Home Care Association.

She explained the smaller agencies will be hit the hardest if the reimbursement rate doesn’t increase enough to offset the higher wages.

“The bottom line is it’s going to be difficult and it remains to seen how many doors will be closed,” said Messerli.

The Human Services Conference Committee wrapped up its work on the Human Services Finance Bill Wednesday evening.

According to Chair Representative Mohamud Noor, lawmakers are moving forward with the House proposal that includes a higher reimbursement rate increase.

“They’re going to receive a 21.3% increase compared to what they have right now so that’s a significant increase,” said Rep. Noor. “I think this gives them a cushion so they can pay $19 and then make sure they are able to stay afloat.”

The House and Senate are expected to vote on the budget bill this week.