2014: Legislature Authorizes 5% Rate Increase for Continuing Care Providers
The 2014 Minnesota Legislature authorized a 5.0% rate increase for the home-based long-term care industry, with 80% going to direct caregiver wages.
- While inflation rose 24.5% between 2003 and 2012, provider rates that pay for caregiver wages increased only 3.4% during that same period.
- The problem of low wages has been a major contributor to high staff turnover, which lowers the quality of care received by people with disabilities.
Success of the 5% Campaign means the first regular wage increase for continuing care providers in seven years. The increase is a great first step towards funding these essential services that support more than 90,000 people with disabilities and older adults in Minnesota. As part of the legislation, most providers that receive a rate increase are required to submit a quality improvement plan to the Minnesota Department of Human Services (DHS).
For more details, see Laws of Minnesota 2014, chapter 312, article 27, sections 71, 75.