As an owner of a home care agency in the Sacramento, California region, I know that in-home care for elders and others can be quite expensive. Moreover, there are few sources of financial support (long-term care insurance and Veteran’s Aide & Attendance being the primary ones) for families who need to pay for home care.
Now, the Federal Government wants to make it more expensive.
Back in September of this year, I wrote about the California law concerning wages for Home Care Aides and how incredibly expensive it would be for clients and families if Home Care Aides were not exempt from overtime provisions of Wage and Hour laws at the state and federal level. In the previous post, I pointed out that, without the overtime exemption, clients needing 24 hour care would have to pay over 235% more than it currently costs.
Well, guess what. The federal government according to the US Department of Labor’s new Notice of Proposed Rulemaking (NPRM), thinks that paying that extra amount is a good idea. You can read the notice at the link in the last sentence, if you are a glutton for punishment.
Frankly, I am amazed and appalled. I understand the political motivation behind the ruling, but the sad thing is it will not help employees. Jobs that exist will disappear. At the new cost levels, they have to disappear. Clients now able to stay at home will be forced to get rid of assets to qualify for Medicaid so that they can move into a “nursing home”. The only thing that will do is raise taxes to cover the increased Medicaid expenses.
Caregivers now making close to $40,000 working four (4) 24 hour shifts per week will lose their jobs. It is simply inevitable. I hate it, for both our clients and our employees.
A sad day. I will talk about some of the other reasons this is going to hurt clients, families and caregivers in my next post.
As always, however, best wishes. Bert