South Carolina bill aims to raise at-home caregiver wages

COLUMBIA, S.C. — A new proposal at the South Carolina State House could boost wages for at-home caregivers who serve Medicaid recipients and ease the state’s long waitlist for the program.

As of January, 34,904 Medicaid members in South Carolina were enrolled in a program that pays for direct caregivers to assist with daily needs at-home, according to information provided to News 19 from the Department of Health and Human Services. Providers are paid $25 an hour for those services through a reimbursement from the state, an increase of 79% from 2019.

However, advocates say there’s a significant gap between what providers are paid and what caregivers actually take home. A study from the National Domestic Workers Alliance found the median wage for caregivers is only $13 an hour.

“We have directors from our state departments saying that they’re losing care workers to places like Target and Walmart and fast food joints that pay $20 an hour,” said Maria Reyes with the National Domestic Workers Alliance. “Every county, all 46 counties, have someone on the waiting list and receiving services. So there’s no county not affected.”

A bill filed by Sen. Darrell Jackson, D-Richland, would require providers to spend at least 70% of their Medicaid reimbursements directly on caregiver compensation. That threshold would increase to 80% by 2030.

“It challenges us to pay more using the Medicaid funding so it doesn’t cost the state anything,” Jackson said. “It basically says Medicaid would change its formula to pay those who are actually doing the work more money.”

Supporters of the bill believe higher wages will help recruit and retain more caregivers. According to the alliance, more than 33,000 people in South Carolina are currently on the waitlist for these services, with factors like the state’s aging population and fewer workers creating a shortage of care.

“When you look at some of our healthcare concerns, we are one of the highest states with healthcare concerns,” Jackson said. “We have an aging population. I think we need to step up our effort in providing the services for the people who are actually doing it.”

The state’s Department of Health and Human Services says that family members who provide care for their relatives can also be reimbursed—if they are employed by an enrolled provider and meet certain requirements.

The bill remains in committee.