Higher Pay Could Be Coming to Home Care Industry Workers

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Bloomberg Businessweek reports that the Obama Administration wants to repeal a law that provides home care agency employer’s an exemption from paying workers minimum wage.

According to data by FranData, there are about 22,000 home health care establishments, which on average pay their employees about $20,000 per year to care for seniors.

“many direct-care workers involved in personal care lack the training and support necessary to provide quality at-home care, such as administering medications. The poor working conditions and low salaries, at a national median of $8.8 [per hour] … contribute to a high staff turnover rate.”

For profit companies have come to dominate the industry, from 2 percent of Medicare-certified agencies in 1975 to 68 percent in 2006, according to the Labor Dept.

The government is the largest supporter of the industry, with 75% of home health care revenue coming through public programs like Medicare and Medicaid.

Growing Home Care Industry May Have to Raise Pay

John Yedinak

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