Report released on rate and wage study of providers serving people with disabilities, older adults

A report on findings from a comprehensive study evaluating wages and rates paid to service providers that support people with disabilities and older adults is now available. The study, and resulting report, was produced by independent consultant Burns & Associates.

The Oregon Legislature in 2023 required this evaluation through Senate Bill 5506. The study focused on direct-care services provided to people who receive Medicaid-funded services through two Oregon Department of Human Services programs: the Office of Aging and People with Disabilities (APD) and the Office of Developmental Disabilities Services (ODDS).

The study reviewed wages and payment rates for care providers who work in people’s homes, group homes, foster homes licensed or certified by APD or ODDS, day centers and larger residential long-term care settings including assisted living and residential care facilities. These providers are paid for performing essential services that support people in living their daily lives.

The study report includes key findings and recommendations. The recommendations include:

• Establishing transparent rate models to reflect current costs of delivering services.
• Standardizing total compensation for direct-care workers across systems, services and service delivery models by:
  • Raising the average wage for direct-care workers employed by agencies to $23.20 per hour, which would equal about $48,000 annually, and including funding for comprehensive benefits.
  • Increasing base wages for self-employed direct-care workers by $4.50 per hour to match these new payment models.
• Creating a new requirement for agencies to report data regarding direct- care worker wages and benefits, staffing levels and other key metrics to measure how agencies use their payments and to inform future rate changes.

Making these changes will require an investment of an additional $1.3 billion each year, including more than $400 million in state funds – which is a 30 percent increase from current reimbursement rates. The investment would go toward increasing reimbursement rates for providers that serve people receiving Medicaid services and supports through APD and ODDS.

The decision to change how much providers are paid is up to the Oregon Legislature. ODHS submitted the Burns & Associates report to the Joint Ways and Means Committee, which helps decide the state’s budget every two years.

The 2023 Oregon Legislature directed ODHS to carry out this study to find ways to ensure the state can meet the growing demand for services.

Burns & Associates conducted the study using information from an advisory group, work groups, surveys of providers, and research about wages, job qualifications and workforce challenges. A draft of the study's recommendations was made available for public feedback in October. The final report, a summary of the findings and recommendations, and other supporting documents are on the Burns & Associates website.