On June 2, 2022, Governor DeSantis signed the Freedom First Budget for State Fiscal Year 2022-2023. The Freedom First Budget (“Budget”) increased the minimum wage for employees of Medicaid providers to at least fifteen ($15) dollars per hour. The Budget provided over $600 million in funding to the Agency for Health Care Administration (“AHCA”) for the sole purpose of increasing the minimum wage for employees of Medicaid providers. AHCA has been directed to increase Medicaid Managed Care reimbursement rates and certain Medicaid fee-for-service fee schedules in an effort to distribute the funds.
By October 1, 2022, AHCA is required to enter into a supplemental wage agreement with each impacted Medicaid provider to ensure compliance with the minimum wage requirements. Any provider who fails to sign the agreement will be subject to audits and recoupment of funds associated with the minimum wage requirement.
The agreement(s) will require and include:
- The provider to agree to pay each of its employees at least fifteen ($15) dollars per hour; and
- An attestation under penalty of perjury, stating that every employee of the provider, as of October 1, 2022, will be paid at least fifteen ($15) dollars per hour.
AHCA will be entering into a supplemental wage agreement with all managed care plans to ensure these funds are used to raise the wages of direct care employees under contract with the managed care plan. The managed care plan is required to provide attestation to the AHCA that they have amended each provider’s contract rate to comply with this provision by January 1, 2023.
Beginning January 1, 2023, an employee of a provider receiving an increased rate that is not receiving a wage of at least fifteen ($15) dollars per hour may bring a civil action in a court of competent jurisdiction against their provider.
Should you have any questions regarding the above, please contact the Garfunkel Wild attorney with whom you regularly work, or contact us at [email protected].