DHS: Medicaid cost coverage for nursing homes will increase to support health care workers

MADISON, Wis. (WMTV) - The Wisconsin Department of Health Services announced Wednesday that Medicaid cost coverage for nursing homes will increase in the fiscal year 2023.

The announcement from DHS said cost coverage will increase from 77% in 2022 to 91% in 2023. The change comes from a recommendation from the Governor’s Task Force on Caregiving, which ties the increase to supporting health care workers’ wages and benefits.

“The people who work in and lead Wisconsin’s nursing homes are critical to ensuring quality care for residents across the state of Wisconsin,” DHS Secretary-designee Karen Timberlake said. “Our new rate setting model allows us to prioritize funding for direct care nursing and support increased wages for health care workers to ensure continuing high-quality care.”

Health officials said Wisconsin projects that the demand for long-term care services will rise faster than the workforce will grow within the coming years. According to DHS, the growth rate of the state’s population age 65 and older will be six times higher than the overall increase in Wisconsin’s population.

“Our mission-driven providers are deeply appreciative of these efforts which appropriately allocate critically needed dollars for caregivers and other frontline support staff who are essential in meeting the needs of our skilled care residents. Those who live and work in our state’s long-term care settings will be greatly assisted by the nursing home funding system advanced by DHS,” LeadingAge Wisconsin President and CEO John Sauer said.

From July 1, 2019 through June 30, 2023, Wisconsin will invest a total of more than $500 million to nursing homes and more than $275 million to hospitals.

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