In 2020 Virginia passed legislation implementing a phased increase to Virginia’s minimum wage. When the legislation was being discussed, DMAS, while acknowledging the impact across many provider types, was unable to provide a complete fiscal impact. DMAS is now surveying various provider types for information that will allow the agency to estimate the full fiscal impact of the minimum wage legislation.

The survey is intended for all Medicaid providers and addresses services beyond nursing facility care like hospice and home health. VHCA-VCAL encourages members to review and complete the survey, if applicable. Responses are due March 22.

Phased Schedule for Minimum Wage Increases

Delayed slightly by COVID, the first mandated increase is scheduled to occur on May 1, with the minimum wage increasing to $9.50 per hour. On January 1, 2022, the minimum wage will increase to $11.00 and on January 1, 2023 it would move to $12.00. At that point, further increases would need re-authorization by the General Assembly. If that occurs, the phased approach would continue with the move to $13.50 January 1, 2025 and $15.00 January 1, 2026. It would continue to increase by an inflation factor thereafter. To the extent the federal minimum wage exceeded the Virginia minimum wage, the federal wage would prevail.

Information and Instructions on the DMAS Survey

The following is the instruction and link to the survey that DMAS would like nursing facilities to complete. Following the message, Steve Ford has included some clarification of the instructions based on conversations with DMAS and the contractor. 

The survey is designed for all provider types, with answers distinguishing the type of service you provide (“Nursing Facility”); if you provide multiple services, you should include them all by including the requested information on the various lines. Multi-facility companies can provide one survey for all their facilities/services, but please note the clarifications as they are pertinent to that approach.

You may also review this PDF version of the survey prior to entering the information and to allow for data compilation before you take the online survey. The print version cannot be submitted; the survey must be entered online.

Hello Virginia Medicaid provider,

Pursuant to the budget bill for fiscal years 2021 and 2022, the Department of Medical Assistance Services (DMAS) is conducting a study of the impact of the Commonwealth’s increasing minimum wage on providers and the need for potential changes to Medicaid payment rates. DMAS has contracted with Health Management Associates to assist with this study.

HMA has developed a survey to collect data on staff wages to determine the impact of minimum wage increases. The survey covers direct care staff as well as administrative and support staff. Further, recognizing that effects will vary according to an employee’s current wage – and will impact both staff earning less than the new minimum wage and staff earning somewhat more – the survey collects data for payroll costs at various wage levels.

A copy of the survey is attached so that you may gather the necessary information prior to completing the survey here: https://healthmanagement.qualtrics.com/jfe/form/SV_5mudZJ7e87GUur4. 

All surveys responses are due by March 22, 2021. Please note that reporting of survey results will be aggregated across provider class/type. HMA will not be releasing any provider-specific information.

If you have any questions about this study, please contact Stephen Pawlowski with HMA at spawlowski@healthmanagement.com or (602) 466-9840.

VHCA-VCAL Clarifications

• The survey only allows for one Tax ID and 10 NPIs. If you have more, you can email the survey contact in the DMAS message above with the list of additional Tax IDs and NPIs. Please reference the “Provider Name” listed in the first question of the survey on your subsequent email so the additional data can be linked to the survey.
• If you have multiple locations that are in both “Northern Virginia” and “Rest of State,” choose the location for which the majority of revenue is reported. DMAS indicates it will allocate as necessary.
• On Screen 6 “Total Paid Wages”, the first row “Administrative and support staff across the organization” should include all indirect care staff regardless of if they are in the central office or in a facility. The subsequent lines (of which “Nursing Facility” would be utilized by all with others potentially utilized if you provide other services) should only be direct care staff.

If you have questions, you should email the contact listed in the DMAS email; feel free to copy Steve Ford, but understand that VHCA-VCAL is not administering this survey and therefore will not necessarily be able to answer questions.