Monday, March 7, 2016

Cuomo's Minimum-Wage Hike Could Sink Home Health Care Agencies

Gov. Andrew Cuomo’s plan to gradually raise New York’s minimum wage could push some home health care agencies into bankruptcy, the providers say, according to Crain's.

Home health aides typically earn about $10 an hour in New York, far below the $15 minimum wage that Cuomo is proposing.

Crain's continues:
[A]gencies have been struggling for years with unfunded wage mandates and reduced reimbursement rates from Medicaid and Medicare. About 70% of home health agencies reported operating losses for 2013 in a survey by the Home Care Association of New York State. The industry group warned that the minimum-wage hike would result in bankruptcies and reduced services if the state budget doesn’t cover the higher labor costs.
The group estimated that providers would face $1.1 billion in increased costs in the first two years, and $2.19 billion once the minimum wage reaches $15 statewide, in 2021. 
  -RW

2 comments:

  1. Of course, when these private firms go belly up, the government will HAVE to step in and help. smh

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  2. You just have to wrap your mind around the fact that "progressives" hate poor and average people. And minorities. They certainly think those people are complete helpless idiots who can't tie their own shoes without the "help" of the far superior "progressive". The "progressives" certainly do not care one bit if their "help" results in mass slaughter or mass poverty for the objects of their "help" and concern. Once you've grasped this, everything "progressives" do starts to make sense (or at least be predictable).

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