Action Alert from Incompass Michigan and MALA:

Contact Your Legislators to Address Direct Care Wage Funding Shortfall 

The Michigan Department of Health and Human Services (MDHHS) recently issued a Memorandum indicating that all qualifying direct care workers (DCWs) should becompensated, prior to overtime consideration, at least $17.13 per hour beginning January 1, 2026. DCWs clearly deserve higher wages. However, the MDHHS memo places the onus of compensation at that wage level on the provider, without clearly addressing the responsibility to assure that reimbursement rates are structured to support this mandated wage level.  

In FY26, MDHHS has provided the PIHPs with an additional $51.9M to support provider costs associated with the wage requirement of $17.13 per hour.  However, it is our assessment that the amount of funding allocated is inadequate for this purpose.  In addition, while we appreciate the inclusion of funding in the recent Executive Budget recommendation for the minimum wage increase that will occur January 1, 2027 ($69.5M), this will also not come even close to covering provider costs for a wage increase of $1.27 per hour to $18.40 per hour.

We are asking you to urge the Michigan Legislature to address this funding inequity as soon as possible, as providers and families bearing the burden of these increased expenses are at a breaking point of sustainability.  We are requesting immediate adjustments to the funding to cover these costs, along with clear guidance and accountability measures to PIHPs and CMHSPs to ensure that the funds reach providers, families, and the DCWs they employ.  Without such action, Michigan’s most vulnerable residents are at risk.

Incompass Michigan is collaborating with MALA in urging our members to contact their State Representative and State Senator to communicate this message.  If you have already reach out, THANK YOU!  If not, act now to protect access to services for individuals with disabilities.

Click to contact your state legislators today.

A sample message has been provided for your communication to legislators, which can also be edited to customize, based on how this funding reduction would impact your organization and community.

Please reach out to a Incompass Michigan with any questions.