As was required with the previous American Rescue Plan Act (ARPA) rate increases, provider agencies will be required to attest in writing that a minimum of 85% of these rate increases will be passed on to direct-care workers in the form of wage increases, bonuses and/or increased benefits. Costs incurred by the provider agencies that are a direct result of these compensation increases may be counted toward their 85% passthrough, i.e., the amount that the Federal Insurance Contributions Act (FICA) and other payroll taxes increase due to an increase in direct-care workers’ wages. Agencies have until March 31, 2025, to expend these and the previous ARPA rate increases. For more information, please see the Memo below.
Behavioral Health Services Rate Increase Memo
For more information, please contact the Bureau for Medical Services (BMS) at 304-558-1700.