State lawmakers fight caregiver pay cut

Dec. 20--Tweet

Faced with a rising minimum wage and increased cost of living, the incentives to become a caregiver are diminishing, despite many passionate workers.

Assembly members Shelley Mayer, Steve Otis and Gary Pretlow and state Sen. Andrea Stewart-Counsins, along with several organizations for people with disabilities are pushing New York State to invest in long-term care services -- including personal assistants and caregivers to the elderly, infirm and most severely disabled members of society.

According to Assemblywoman Mayer's office, Medicaid-managed long-term care plans recently announced that they will be "cutting reimbursement rates in the State Medicaid program's Consumer Directed Personal Assistance program because of a lack of funding."

This means those who provide the most difficult and dedicated home care may undergo a significant pay cut.

If these skilled assistants can't afford to continue in their line of work, many disabled people -- especially those covered by Medicaid -- may find it increasingly difficult to get long-term care.

"It is completely unacceptable to now learn that workers who are ostensibly paid by NYS are experiencing a decline in pay. It is unfair that these indispensable, dedicated workers will have to suffer a pay cut or seek other employment." Assemblywoman Mayer wrote in a statement. "And we put the individuals with disabilities at risk of institutionalization. This is both bad for the individuals who value their independence and more expensive for NYS over the long-term."

In light of the rising minimum wage, these skilled workers are more likely to leave the field for higher-paying jobs.

"In 2006, on average our workers earned about 150 percent of minimum wage. That was a good wage," said Bryan O'Malley, executive director of the Consumer Directed Personal Assistance Association of New York State. "We don't want workers to be forced to choose between (working in this field) and putting food on the table by working somewhere like Burger King... We want everyone to make a living wage, but we feel the need to, as a society, recognize those that take care of people... the work can be (grueling;) they shouldn't be making minimum wage."

On Nov. 15, New York's largest Medicaid managed long-term care plan, GuildNet Inc., announced its intended departure from three counties. CEO Alan R. Morse wrote, in a letter to the State Department of Health, "effective immediately, we will not be enrolling any additional members into GuildNet programs in Nassau, Suffolk and Westchester (counties) and will seek your assistance in vacating these counties while we consider our options for the remainder of GuildNet."

"Despite what I believe have been good faith best efforts by state officials, we continue to incur very substantial deficits," Mr. Morse wrote about the 'calamitous' state of reimbursements.

GuildNet's total enrollment in these counties is 4,602 patients.

A year ago EmblemHealth also exited the managed long-term care program -- its patients were transferred to GuildNet.

By allowing chronically ill or disabled patients to remain in their homes, managed long-term care plans save the state millions of dollars, in addition to providing additional comfort, quality of life and continuity to those who need it most.

According to Mr. O'Malley, his organization alone saves the state an estimated $100 million a year. If they lose long-term assistants, some people will be forced to go into more costly types of care, such as institutions and nursing homes.

"It's a lose, lose, lose for individuals, workers and taxpayers," said Mr. O'Malley, emphasizing the value of "stable" care and assistance for so many New Yorkers.

"It is unconscionable that (workers') wages should be cut or that they should risk losing their health insurance. It is up to the state to ensure Medicaid-managed long-term care plans have enough money to pay providers and these assistants what they need," wrote Sen. Stewart-Cousins. "We must fight for a budget that ensures reimbursements and rates are adequate. The Department of Health funds wage increases for employees in nursing homes and the home health care industry -- and it should do the same for these workers, who deserve nothing less."

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