The COVID-19 pandemic intensified workforce challenges across industries, but its impact was especially severe for organizations supporting individuals with disabilities.
Direct Support Professionals (DSPs)—front-line workers providing essential daily care—were already earning an average of $11.36 per hour. As wages increased across other industries, DSP compensation became even less competitive, leading to significant workforce shortages.
Because DSP wages are directly tied to state Medicaid reimbursement rates, providers had limited ability to raise wages without legislative action. SIPN, alongside the Arc of Indiana and the Indiana Association of Rehabilitative Facilities (INARF), needed a path to secure increased funding through the state budget.
RJL Solutions partnered with SIPN, the Arc of Indiana, INARF and other stakeholders to support a coordinated legislative effort focused on increasing Medicaid reimbursement rates.
As part of the coalition, RJL Solutions worked directly with key leaders in the Indiana House and Senate to advocate for a 14% rate increase, totaling $80 million. This effort centered on strategic engagement and storytelling—sharing the real-world impact of workforce shortages on individuals with disabilities, as well as the experiences of DSPs themselves.
By aligning stakeholders and reinforcing the urgency of the issue, RJL helped build support for including funding language within House Bill 1001 during the 2021 legislative session.
The coalition’s efforts resulted in the successful inclusion of funding in House Bill 1001 (2021).
• $80 Million Secured for DSP Wages: The state budget allocated $80 million over the biennium to increase Medicaid reimbursement rates, directly supporting wage increases for DSPs.
• Direct Impact on Workforce Compensation: Legislative language requires that 95% of the increased funding be used specifically to raise wages and benefits for Direct Support Professionals.
• Strengthening Critical Services: This investment helps stabilize the workforce that supports individuals with disabilities, improving service continuity and quality of care across Indiana.
The full language of House Bill 1001 (2021) can be viewed here.
*The documents below were utilized by SIPN during the 2023 General Assembly Session to support legislation supplementing the wage increase language passed in the 2021 budget bill.
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