State Fiscal Year 2025 Budget Negotiations Continue
State Fiscal Year 2025 Budget Negotiations Continue
The Michigan Senate and House of Representatives passed their versions of the state budget for fiscal year 2025, which begins October 1, 2024. Included in the budget bills, and in the governor’s recommended budget, are two areas of interest to Michigan nursing facilities.
Continuing the Direct Care and Non-Direct Care Worker Wage Increase
◼️ Governor: The executive recommendation includes the continued funding of the direct care worker wage increase at FY 24 level of $3.20/hour for CNAs, LPNs, RNs and respiratory therapists. The proposed budget also allocates an increase of $.85/hour over FY 24 levels to non-clinical staff, up to $1.70/hour, for housekeeping, maintenance workers, plant operations, laundry, dining room assistants, dietary workers and other non-direct care staff as classified.
◼️ House: House Bill 5556 includes the continued funding of the direct care worker wage increase at the FY 24 level of $3.20/hour. Like the executive budget recommendation, it also includes an increase of $.85/hour to non-clinical staff over FY 24 levels, up to $1.70/hour.
◼️ Senate: Senate Bill 767 includes the continued funding of the direct care worker wage increase at the FY 24 level of $3.20/hour. The Senate Bill does not include an increase for the non-clinical staff, leaving funding at the FY 24 level of $.85/hour.
Changes to Medicaid Policy on Medicaid Certification of Medicare Only Beds in Nursing Facilities
◼️ Governor: The governor’s budget proposal does not include any reference to a change in policy regarding the dual certification of Medicare only beds.
◼️ House: HB 5556 includes language changing the Medicaid policy on dual certification of Medicare only beds in nursing facilities. Current Medicaid policy makes it very difficult for nursing facilities with Medicare only beds to become dually certified. There is a long list of requirements, including an 8-quarter lookback on survey issues, which has limited Medicaid access throughout the state. The House Bill includes HCAM provided language, which simplifies the process, allowing Medicaid certification of Medicare only beds in cases where the facility is in compliance with the state survey agency at the time of application.
◼️ Senate: SB 767 also includes language changing the Medicaid policy on dual certification of Medicare only beds in nursing facilities.
Next Steps: Points of difference between the executive budget recommendation and the House and Senate bills will be negotiated, and they will eventually agree on a final budget. HCAM will continue to engage with legislators and the administration to ensure these initiatives are implemented in a way that supports nursing facilities, their staff and their residents. We will continue to provide updates as the budget process continues.