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Medicaid Payment Policies to Support the Home- and Community-Based Services Workforce

Chapter 1 of the March 2026 report includes a recommendation aimed at bolstering the home- and community-based services (HCBS) workforce by requiring states to report hourly wages paid to HCBS workers to help states set effective HCBS payment rates. Workforce shortages reduce Medicaid’s ability to serve people with long-term care needs in the home or community. Many states are exploring ways to use Medicaid rate setting to expand the HCBS workforce and reduce worker turnover. Under this recommendation, states would gain access to more robust wage data, including comparison data from neighboring states, as a way to promote the HCBS workforce.

From: March 2026 Report to Congress on Medicaid and CHIP