Nursing Homes: Watch for DOH Minimum Wage Survey
The Department of Health (DOH) and the minimum wage implementation workgroup, of which LeadingAge NY is a part, are working to estimate the impact of wage increases on health care providers to allow the state to make appropriate adjustments to Medicaid rates. The state intends to provide additional funding to cover wage increases, including the increased cost of wage-sensitive benefits, for those employees whose wages are below the minimum wage. Nursing home cost reports do not provide sufficient detail to identify the number of employees whose pay is below the minimum wage. DOH has determined that collecting wage data through a provider survey is the only way to get the needed level of detail.
DOH intends to distribute an online survey to all nursing homes this week to collect detailed wage data. Homes will have about a week to complete the survey, which will ask them to list hours or the count of employees in each wage band up to $15 per hour. Wage bands will be separated by 25 cents for wages closest to the minimum wage (e.g., $9.00-$9.25) and 50 cents for wages closer to $15 (e.g., $14.51 to $15.00). The survey is also likely to request information on benefits that are sensitive to wage levels (e.g., payroll taxes) and contract staff wages if available.
We urge members to complete the survey quickly and accurately once received. When the survey is released, we will echo the DOH message to members to help ensure it is seen. The minimum wage excerpt from our State Budget Analysis is copied below.
Contact: Darius Kirstein, dkirstein@leadingageny.org, 518-867-8841
Minimum Wage:
The final budget accepts and modifies the Executive Budget’s proposed increase to the State’s minimum wage. The agreement includes funds intended to cover the costs of the increase for health care providers, and delays the first phase-in until Jan. 2017. The minimum wage increase will be phased-in over several years and at a different rate in different regions of the State, as follows:
For workers in New York City employed by large businesses (i.e., those with 11 or more employees),the minimum wage will rise to $11 at the end of 2016, then another $2 each year after, reaching $15 on 12/31/2018:
$11/hr. on Dec. 31, 2016
$13/hr. on Dec. 31, 2017
$15/hr. on Dec. 31, 2018
For workers in New York City employed by small businesses (i.e., those with 10 or less employees), the minimum wage will rise to $10.50 by the end of 2016, then another $1.50 each year after, reaching $15 on 12/31/2019:
$10.50/hr. on Dec. 31, 2016
$12/hr. on Dec. 31, 2017
$13.50/hr. on Dec. 31, 2018
$15/hr. on Dec. 31, 2019
For workers in Nassau, Suffolk and Westchester Counties, the minimum wage will increase to $10 at the end of 2016, then $1 each year after, reaching $15 on 12/31/2021:
$10/hr. on Dec. 31, 2016
$11/hr. on Dec. 31, 2017
$12/hr. on Dec. 31, 2018
$13/hr. on Dec. 31, 2019
$14/hr. on Dec. 31, 2020
$15/hr. on Dec. 31, 2021
For workers in the rest of the State, the minimum wage will increase to $9.70 at the end of 2016, then another $0.70 each year after until reaching $12.50 on 12/31/2020 – after which it will continue to increase to $15 on an indexed schedule to be set by the Director of the Budget in consultation with the Department of Labor:
$9.70/hr. on Dec. 31, 2016
$10.40/hr. on Dec. 31, 2017
$11.10/hr. on Dec. 31, 2018
$11.80/hr. on Dec. 31, 2019
$12.50/hr. on Dec. 31, 2020
The final budget provides a safety valve to the wage increases, beginning in 2019. The State will conduct an annual analysis of the economy in each of the State’s regions and the impact of the minimum wage increases to determine whether a temporary suspension of the scheduled increases is necessary.
Included in the budget is $25.3 million in SFY 2016-17; $175.2 million in SFY 2017-18; and $504.2 million in SFY 2018-19 in combined state/federal funds to Medicaid providers, to help offset the costs of this mandate. The majority of this funding is slated to be allocated to home care and personal care providers. With the minimum wage increase delayed until Jan. 2017, only one-quarter worth of costs will be incurred in the current fiscal year. The Legislature clearly heard our message and understands that providers cannot sustain these wage increases without adequate State reimbursement. The funding included in the final budget is a good faith effort by lawmakers, which we will work to build upon in next year’s State budget.