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SF530 • 2026

A bill for an act relating to support of direct care services and the direct care workforce, establishing a state minimum hourly wage for direct care workers under the Medicaid program, and including a contingent effective date.

A bill for an act relating to support of direct care services and the direct care workforce, establishing a state minimum hourly wage for direct care workers under the Medicaid program, and including a contingent effective date.

Labor
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
CELSI
Last action
2025-03-11
Official status
Subcommittee: Driscoll, Alons, and Donahue.
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

A bill for an act relating to support of direct care services and the direct care workforce, establishing a state minimum hourly wage for direct care workers under the Medicaid program, and including a contingent effective date.

A bill for an act relating to support of direct care services and the direct care workforce, establishing a state minimum hourly wage for direct care workers under the Medicaid program, and including a contingent effective date.

What This Bill Does

  • A bill for an act relating to support of direct care services and the direct care workforce, establishing a state minimum hourly wage for direct care workers under the Medicaid program, and including a contingent effective date.

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2025-03-11 Iowa Legislature

    Subcommittee: Driscoll, Alons, and Donahue.

  2. 2025-03-05 Iowa Legislature

    Introduced, referred to Workforce. S.J. 419 .

Official Summary Text

A bill for an act relating to support of direct care services and the direct care workforce, establishing a state minimum hourly wage for direct care workers under the Medicaid program, and including a contingent effective date.

Current Bill Text

Read the full stored bill text
Senate

File

530

-

Introduced

SENATE

FILE

530

BY

CELSI

A

BILL

FOR

An

Act

relating

to

support

of

direct

care

services

and

the

1

direct

care

workforce,

establishing

a

state

minimum

hourly

2

wage

for

direct

care

workers

under

the

Medicaid

program,

and

3

including

a

contingent

effective

date.

4

BE

IT

ENACTED

BY

THE

GENERAL

ASSEMBLY

OF

THE

STATE

OF

IOWA:

5

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DIVISION

I

1

DIRECT

CARE

WORKFORCE

SUPPORT

PROGRAMS

2

Section

1.

NEW

SECTION

.

84A.22

Direct

care

workers

——

wage

3

survey.

4

Beginning

January

1,

2027,

and

each

odd-numbered

year

5

thereafter,

the

department

of

workforce

development

shall

6

replicate

the

survey

entitled

“Direct

Care

Workers

of

Iowa

7

2019

Wage

&

Benefit

Survey”,

released

in

June

2019,

to

survey

8

wages

and

benefits

for

direct

care

workers.

The

survey

shall

9

measure

the

wages

and

benefits

of

direct

care

workers

employed

10

through

temporary

staffing

agencies

separately

from

direct

care

11

workers

employed

directly

by

a

facility

or

employer,

and

shall

12

measure

wages

and

benefits

delineated

by

direct

care

workers’

13

years

of

experience

to

determine

the

effect

of

seniority

on

14

current

wages

and

benefits.

A

report

containing

the

results

of

15

the

survey

shall

be

published

on

the

department

of

workforce

16

development’s

internet

site

no

later

than

December

15.

17

Sec.

2.

NURSING

FACILITY

FUNDING

——

REVIEW

AND

18

REPORTING.

The

department

of

health

and

human

services

shall

19

do

all

of

the

following:

20

1.

Review

the

appropriation

made

pursuant

to

2023

Iowa

21

Acts,

chapter

112,

section

30,

subsection

1,

paragraph

“a”,

22

subparagraph

(1),

subparagraph

division

(a),

for

the

fiscal

23

period

beginning

July

1,

2023,

and

ending

June

30,

2025,

for

24

rebasing

of

case-mix

nursing

facilities

including

the

fifteen

25

million

dollars

provided

for

this

purpose,

to

identify

how

the

26

additional

funding

was

utilized

by

the

nursing

facilities

and

27

the

extent

to

which

the

wages

of

direct

care

workers

as

defined

28

in

section

249L.2

were

increased

as

a

result

of

the

additional

29

funding.

The

department

shall

report

initial

findings

and

30

recommendations

by

December

15,

2025,

and

final

findings

and

31

recommendations

by

December

15,

2026,

to

the

governor

and

the

32

general

assembly.

33

2.

Review

the

outcomes

of

initiatives

funded

through

the

34

federal

American

Rescue

Plan

Act

of

2021,

Pub.

L.

No.

117-2,

to

35

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530

support

the

health

care

workforce

including

use

of

the

funds

to

1

increase

the

pay

and

benefits

of

direct

support

professionals,

2

and

train,

recruit,

retain,

and

expand

the

direct

support

3

professional

workforce,

to

determine

if

the

initiatives

4

should

be

continued.

The

department

shall

report

findings

and

5

recommendations

to

the

governor

and

the

general

assembly

by

6

December

15,

2025.

7

DIVISION

II

8

DIRECT

CARE

WORKER

MINIMUM

WAGE

REQUIREMENTS

——

MEDICAID

9

PROGRAM

10

Sec.

3.

DIRECT

CARE

WORKER

MINIMUM

WAGE

REQUIREMENTS

——

11

MEDICAID

PROGRAM.

12

1.

a.

Notwithstanding

section

91D.1,

the

state

hourly

wage

13

for

an

employee

employed

as

a

direct

care

worker

by

a

provider

14

reimbursed

under

the

Medicaid

program

shall

be

at

least

$15.00

15

beginning

July

1,

2026;

at

least

$16.00

beginning

July

1,

16

2027;

at

least

$17.00

beginning

July

1,

2028;

at

least

$18.00

17

beginning

July

1,

2029;

at

least

$19.00

beginning

July

1,

2030;

18

and

at

least

$20.00

beginning

July

1,

2031.

On

or

after

July

19

1,

2032,

the

state

hourly

wage

for

an

employee

employed

as

a

20

direct

care

worker

by

a

provider

reimbursed

under

the

Medicaid

21

program

shall

be

increased

by

a

cost-of-living

adjustment

as

22

determined

by

applying

the

percent

change

in

the

consumer

price

23

index

for

urban

wage

earners

and

clerical

workers,

United

24

States

city

average,

as

published

annually

in

October

in

the

25

federal

register

by

the

federal

department

of

labor,

bureau

of

26

labor

statistics.

27

b.

Paragraph

“a”

shall

not

be

construed

to

authorize

a

28

provider

that

employs

a

direct

care

worker

whose

current

hourly

29

wage

is

above

the

minimum

wage

pursuant

to

paragraph

“a”,

to

30

decrease

the

direct

care

worker’s

current

hourly

wage.

31

2.

For

the

purposes

of

this

section,

“direct

care

worker”

32

means

an

individual

who

provides

supportive

services

and

care

33

in

home-based,

community-based,

or

facility

settings

to

people

34

experiencing

health

conditions,

illness,

or

a

disability,

35

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and

who

receives

compensation

for

such

services.

“Direct

1

care

worker”

includes

but

is

not

limited

to

direct

support

2

professionals,

supported

community

living

workers,

home

health

3

aides,

universal

workers,

hospice

aides,

personal

assistants,

4

patient

care

technicians,

consumer

directed

attendant

care

5

providers,

senior

helpers

or

companions,

and

certified

nursing

6

assistants.

7

Sec.

4.

CONTINGENT

EFFECTIVE

DATE.

This

division

of

this

8

Act

takes

effect

upon

the

effective

date

of

an

increased

9

appropriation

to

the

department

of

health

and

human

services

10

for

the

Medicaid

program

to

provide

a

reimbursement

rate

11

increase

to

Medicaid

providers

who

are

subject

to

payment

of

12

the

required

minimum

wage

for

direct

care

workers

under

this

13

division

of

this

Act

in

an

amount

that

offsets

the

increase

in

14

the

required

minimum

wage

paid

by

such

Medicaid

providers.

15

EXPLANATION

16

The

inclusion

of

this

explanation

does

not

constitute

agreement

with

17

the

explanation’s

substance

by

the

members

of

the

general

assembly.

18

This

bill

includes

measures

to

support

direct

care

services

19

and

the

direct

care

workforce.

20

DIVISION

I.

Division

I

of

the

bill

includes

provisions

21

relating

to

support

of

the

direct

care

workforce.

22

Beginning

January

1,

2027,

and

each

odd-numbered

year

23

thereafter,

Iowa

workforce

development

shall

replicate

the

24

survey

entitled

“Direct

Care

Workers

of

Iowa

2019

Wage

&

25

Benefit

Survey”,

released

in

June

2019,

to

survey

wages

and

26

benefits

for

direct

care

workers,

and

publish

the

results

of

27

the

survey

on

Iowa

workforce

development’s

internet

site

no

28

later

than

December

15.

29

The

bill

requires

the

department

of

health

and

human

30

services

(HHS)

to

review

the

funding

appropriated

for

the

31

fiscal

period

beginning

July

1,

2023,

and

ending

June

30,

2025,

32

for

rebasing

of

case-mix

nursing

facilities

to

identify

how

the

33

additional

funding

was

utilized,

and

the

extent

to

which

direct

34

care

worker

wages

were

increased

as

a

result

of

the

additional

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530

funding.

HHS

must

report

initial

and

final

findings

and

1

recommendations

to

the

governor

and

the

general

assembly.

HHS

2

is

also

required

to

review

the

outcomes

of

initiatives

funded

3

through

the

federal

American

Rescue

Plan

Act

to

support

the

4

health

care

workforce

and

report

findings

and

recommendations

5

to

the

governor

and

the

general

assembly

by

December

15,

2025.

6

DIVISION

II.

Division

II

of

the

bill

requires

Medicaid

7

providers

to

comply

with

direct

care

worker

minimum

wage

8

requirements.

The

bill

provides

that

notwithstanding

Code

9

section

91D.1

(minimum

wage

requirements

——

exceptions),

the

10

state

hourly

wage

for

an

employee

employed

as

a

direct

care

11

worker,

as

defined

in

the

bill,

by

a

Medicaid

provider

shall

12

be

at

least

$15.00

beginning

July

1,

2026,

and

the

minimum

13

shall

increase

by

$1.00

per

year

to

at

least

$20.00

beginning

14

July

1,

2031.

The

bill

does

not

authorize

a

Medicaid

provider

15

who

is

paying

a

direct

care

worker

an

hourly

wage

above

the

16

required

minimum

to

decrease

the

direct

care

worker’s

current

17

hourly

wage.

On

or

after

July

1,

2032,

this

state

hourly

18

wage

shall

be

increased

by

a

cost-of-living

adjustment

amount

19

as

determined

by

applying

the

percent

change

in

the

consumer

20

price

index

for

urban

wage

earners

and

clerical

workers,

United

21

States

city

average,

as

published

annually

in

October

in

the

22

federal

register

by

the

federal

department

of

labor,

bureau

of

23

labor

statistics.

This

division

of

the

bill

takes

effect

upon

24

the

effective

date

of

an

increased

appropriation

to

HHS

for

the

25

Medicaid

program

to

provide

a

reimbursement

rate

increase

to

26

Medicaid

providers

who

are

subject

to

payment

of

the

required

27

minimum

wage

for

direct

care

workers

in

an

amount

that

offsets

28

the

increase

in

the

required

minimum

wage

paid

by

such

Medicaid

29

providers.

30

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