We have been reporting all session on our efforts to mitigate Governor Mills Administration’s decision to eliminate the Cost-of-living adjustments that ensure compliance with the State law that requires MaineCare to reimburse employers at least 125% of state minimum wage for direct care work.
The COLA expected by most on January 1, 2025 was 3.5% and in October of this year, another COLA rate would have been set for January 1, 2026. The Governor’s budget proposals included no funding for either, but due to a long session of hard work by many legislators and members of this Partnership, we were able to restore some minimal increases.
Last week, the legislature passed, and the Governor signed, the second funding bill of the session (LD 210) that together with an earlier “Part 1” budget (LD 609), provide partial COLAs for this essential workforce. Providers will see a 1.00% to 2.95% COLA over the next two years depending on what section of MaineCare their services are billed to.
This is a far cry from the estimated over 6% needed for the State to meet its reimbursement requirement.
This will make it harder for direct care professionals to stay in their jobs providing support and services to older and disabled people across Maine, and make providing for themselves and their families harder, too.
COLAs are an important tool to ensure that every person who needs care and support services in Maine is able to receive consistent and predictable care and support from a well-trained and appropriately-compensated workforce. We will continue to fight for a rate reimbursement system that values Maine’s direct care and support workforce and the people they serve. We hope you’ll join us!