Mills Administration Announces Increased Payment Rates for Long-Term Care Facilities to Support 125 Percent of Minimum Wage for Direct Care Workers

Press Release

The Mills Administration today announced a plan to increase MaineCare (Medicaid) payment rates for 225 nursing and residential care facilities across Maine beginning January 1, 2022.

The improved rates, which were overwhelmingly approved by lawmakers and signed into law by Governor Mills earlier this year as part of the biennial budget, will allow these facilities to increase pay for direct care workers to at least 125 percent of the state's minimum wage. They also come as the Maine Department of Health and Human Services implements much-needed MaineCare payment increases for other direct care workers across a range of services, including home- and community-based care, behavioral health, and long-term residential care settings.

Because of the complexity of the rate increases, the Maine Department of Health and Human Services had originally planned to increase rates for nursing and residential care facilities in July 2022. However, given the urgent need to further support direct care workers, Governor Mills directed the Department to utilize $4.5 million in already appropriated funding to begin these increased payments on January 1, 2022 in line with legislative intent.

"Providing quality care for Maine's most vulnerable people takes commitment and compassion. Our nurses, direct care workers, and assisted living staff have proven they have both, especially during the pandemic," said Governor Mills. "Our direct care workers deserve pay that matches the important work they do for Maine people. It is my hope that increasing these rates will allow facilities to increase staff wages in the new year and help them recruit and retain committed and compassionate workers. My Administration is committed to continuing to work with the Legislature to strengthen Maine's long-term care system both in the short- and long-term."

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