I am writing to express/comment on serious concern about the real and immediate impact that Virginia’s recently enacted paid sick leave legislation will have on our agency and Agency Directed Personal Care providers across the Commonwealth.

Our agencies provide essential Home and Community-Based Services (HCBS) to elderly individuals and people with disabilities who rely on daily assistance to remain safely in their homes and communities.  The legislation creates a significant unfunded mandate for providers participating in Virginia’s Medicaid-funded personal care programs.

Unlike many private businesses, Agency Directed Personal Care providers cannot simply increase the rates charged for services in order to absorb new operating costs. Our reimbursement rates are established by the Commonwealth, and those rates have not been adjusted to account for the additional expense of providing paid sick leave.

Without additional legislative funding, this mandate places an unsustainable financial burden on providers like myself who cannot simply increase their rates to absorb these new costs. The consequences are significant:

• Increased financial hardship for Agency Directed Personal Care providers.

• Small businesses being forced to reduce services or close their doors.

• Thousands of elderly individuals and people with disabilities facing reduced access to essential Home and Community-Based Services (HCBS).

• A growing workforce crisis that threatens the stability of Virginia’s long-term care system.

The Commonwealth has mandated this new employee benefit, but our reimbursement rates have not been adjusted to fund it. We need lawmakers to understand that this mandate must be accompanied by adequate reimbursement so providers can continue serving Virginia’s most vulnerable citizens.

Virginia has consistently emphasized the importance of community-based care as a cost-effective alternative to institutional placement. However, that system cannot function if the agencies responsible for delivering care are unable to meet payroll, retain caregivers, and remain financially viable.

I respectfully urge budget amendments that provide sufficient reimbursement increases for Agency Directed Personal Care providers to offset the cost of the paid sick leave requirement. Doing so will help preserve access to care for vulnerable Virginians while supporting the dedicated caregivers who make these services possible.

Thanks for your time and consideration.