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Pulse story · 2 cited sourcesOctober 18, 2026

CMS puts states on the clock to track direct care compensation

States must submit readiness reports by July 9, 2027, before annual compensation reports begin in 2028. The requirement tracks spending on worker compensation and sets no minimum share.

CMS has issued guidance requiring states to report the share of Medicaid payments for specified home and community-based services spent on direct care worker compensation. States must report separately for each service and, within each service, separately on self-directed services and services delivered in a provider-operated physical location for which facility-related costs are included in the payment rate.

States are encouraged to engage with their HCBS providers and managed care plans, if applicable, as soon as possible to determine roles and responsibilities, establish benchmarks and milestones, and establish processes and procedures for collecting the necessary data.

Evidence

Each line below is a claim this source supports, checked against its text.

01
SMD 26-005: CMS sets rules for direct care pay reportsdirectsupportnews.com · Oct 9
  • CMS puts states on the clock to track direct care compensation
  • States must submit readiness reports by July 9, 2027, before annual compensation reports begin in 2028. The requirement tracks spending on worker compensation and sets no minimum share.
02
SMD# 26-005 RE: Direct Care Worker Compensation ( ...medicaid.gov · Oct 9
  • States must submit readiness reports by July 9, 2027, before annual compensation reports begin in 2028. The requirement tracks spending on worker compensation and sets no minimum share.
  • CMS has issued guidance requiring states to report the share of Medicaid payments for specified home and community-based services spent on direct care worker compensation.
  • States must report separately for each service and, within each service, separately on self-directed services and services delivered in a provider-operated physical location for which facility-related costs are included in the payment rate.
  • States are encouraged to engage with their HCBS providers and managed care plans, if applicable, as soon as possible to determine roles and responsibilities, establish benchmarks and milestones, and establish processes and procedures for collecting the necessary data.

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