DISCUSSION
The California Department of Social Services (CDSS) requires the submission of a Rate Modification Package whenever changes are made to any component of the In-Home Supportive Services (IHSS) hourly rate calculation. The proposed rate reflects the hourly wage increase to $11.00 per hour, payroll taxes of $1.29 per hour, and the hourly administration cost increasing to $0.14 per hour, which reflects the Fiscal Year (FY) 2017-18 In-Home Supportive Services-Public Authority (IHSS-PA) budget. The recommended action will allow the Health and Human Services Agency to formally submit its rate modification package to CDSS.
State statute requires counties, as the employer of record for IHSS providers, to develop a rate in order to establish an hourly reimbursement level for the IHSS-PA. The rate is calculated by combining the IHSS provider hourly wage, payroll taxes, and the IHSS-PA administrative costs. The hourly administrative costs are derived by dividing the total IHSS-PA budget by the total projected paid IHSS hours for the year. The rate package documents the maximum direct and indirect operating expenses of the IHSS-PA, including provider wages that will be paid by the State. The FY 2017-18 IHSS-PA administrative cost rate is $0.14 per hour, representing a total of expenditures in the FY 2017-18 budget of $506,816 divided by an estimated 3,538,950 provider hours. Reconciliation is completed quarterly to determine actual administrative costs and revenue is adjusted accordingly by the state. |