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State Wage Pass-Through Legislation: An Analysis

April 1, 2003

A wage pass-through is an additional allocation of funds provided through Medicaid reimbursement for the express purpose of increasing compensation for direct-care workers. This issue brief provides a description of the structure of wage pass-through programs in several states, summarizes what is known about the impact of these programs on recruitment and retention of direct-care workers, and identifies key design elements that states should consider if they choose to implement a wage pass-through.

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Key Takeaways

Outcomes have been mixed on the efficacy of wage pass-through's.
PHI identified seven key design considerations.
Wages are important in recruiting and retaining, but wages alone cannot resolve recruitment and retention problems.
Contributing Authors
(PHI), Workforce Strategies

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