1. CMS 80-20 Medicaid Rule
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Calculate current compensation percentage
Determine what % of Medicaid payments go to direct care worker wages, benefits, and payroll taxes
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Identify affected services
Homemaker, home health aide, and personal care services under HCBS
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Exclude non-qualifying costs
Training, travel, and PPE costs are excluded from the 80% calculation
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Assess gap to 80% threshold
If below 80%, plan to increase caregiver pay or reduce admin overhead
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Check for hardship/small provider exemptions
Contact your state Medicaid agency about available exemptions
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Prepare for state reporting requirements Year 3-4
States must begin collecting and reporting compensation data
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Achieve full compliance 2030
80% minimum threshold takes full effect in Year 6
2. EVV Compliance
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Verify EVV captures all 6 required data points
Service type, individual receiving service, date, start/end time, location, provider identity
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Meet tightened data validation timelines
Many states now require EVV data verification within 24 hours (down from 72)
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Check location accuracy tolerances
Geographic verification reduced to 500 feet in most states
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Conduct weekly EVV log audits
Review for errors, missing data, or patterns indicating systemic issues
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Include EVV in caregiver orientation
Hands-on training exercises for all new hires
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Integrate EVV with billing systems
Ensure data flows correctly to prevent claim denials
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Monitor state-specific EVV requirements
Watch for vendor transitions, service expansions, updated rules
3. FLSA / Labor Law
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Review state minimum wage and overtime laws
State laws may exceed federal requirements regardless of federal changes
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Assess current overtime scheduling practices
Identify caregivers regularly scheduled for 40+ hours/week
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Monitor the DOL proposed rule status
Companionship/live-in exemption rule may restore agency exemptions
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Consult employment counsel
Get state-specific guidance before making policy changes
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Do NOT change policies until rule is finalized
The proposed rule is not yet final; enforcement guidance may change
4. General Compliance Infrastructure
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Designate compliance ownership
Assign a compliance officer or shared responsibility team
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Set up automated credential tracking
60/30/7-day reminders before license and certification expirations
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Schedule monthly compliance audits
Review upcoming expirations, training requirements, documentation gaps
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Document all training and policy decisions
Maintain clear records for audit defense
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Join industry associations for regulatory updates
HCAOA, PHI, state HHA associations