Research & Reports

Estimating the Impact of an Increased Federal Minimum Wage on I/DD Providers

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Analysis of the cost to community providers of increasing minimum wages to varying levels

A number of proposals to raise the federal minimum wage have been proposed in Congress, most commonly with calls to implement a $15 hourly minimum wage. However, the ability of community providers to adhere to these standards should they be implemented remains in question; because providers are rate-takers and not rate-setters, they would likely lack the funding to ensure that direct support professionals can earn commensurate wages on this scale.

Therefore, ANCOR contracted Health Management Associates to conduct an analysis of the impact of federal minimum wage hikes of varying degrees on providers and the amount of additional money states would need to invest in Medicaid programs in order to ensure providers can adhere to these standards.