The Florida Medicaid Provider Minimum Wage Requirements, established under the Freedom First budget signed by Governor Ron DeSantis on June 2, 2022, allocated over $600 million to raise the minimum wage for employees of Medicaid providers to at least $15.00 per hour. This initiative, effective from October 1, 2022, requires Medicaid providers to enter into a supplemental wage agreement with the Agency for Health Care Administration (AHCA). The agreement mandates that all employees are paid a minimum of $15.00 per hour, with an attestation under penalty of perjury for compliance.

From January 1, 2023, employees not receiving the minimum wage can pursue legal action against their providers for back wages, liquidated damages, and legal costs. Additionally, managed care plans are obligated to amend their provider contracts to reflect this wage increase, ensuring that direct care employees are compensated accordingly. These plans must provide attestation of these contract amendments to the Agency by January 1, 2023.

Despite these measures, Managed Care Organizations (MCOs) have not fully amended provider contracts to account for this wage increase, leading to a shortfall in the implementation of the intended wage benefits for Medicaid provider employees. This oversight particularly impacts Adult Day Health Care Providers, who are crucial in providing essential services.

To address this issue, there is a pressing need for legislative support to hold MCOs accountable. Effective legislative action is required to ensure that MCOs comply with the wage increase mandates and to support our Adult Day Health Care Providers adequately. This will help in realizing the full potential of the wage increase initiative, ensuring that the employees of Medicaid providers, especially in adult day health care, receive the fair compensation as intended by the legislation.