Addus HomeCare Reports Centers For Medicare And Medicaid Services Approval Of Illinois Waiver Amendment To Increase In-Home Care Rates

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[{"type":"text","content":"FRISCO, Texas, Nov. 18, 2019 /PRNewswire/ -- Addus HomeCare Corporation (Nasdaq: ADUS), a provider of comprehensive home care services, today provided an update on the federal Centers for Medicare and Medicaid Services (\"CMS\") approval of the State of Illinois budgeted rate increases and its expected impact on the Company's operations in its Illinois markets.\nOn November 15, 2019, the State of Illinois received and announced official CMS approval for both rate increases, with the first increase to be effective on December 1, 2019, and the second increase to be effective on January 1, 2020. The State of Illinois previously had finalized its fiscal year 2020 budget with the inclusion of an appropriation to raise in-home care rates to offset the costs of previous minimum wage increases in Chicago and other areas of the state that were imposed beginning on July 1, 2018. These rates were originally set to be effective July 1, 2019, with in-home care rates to be initially increased by 10.9% to $20.28 from $18.29 to partially offset the costs of the minimum wage hikes and then further increased on January 1, 2020 by an additional 7.7% to $21.84, providing full funding for both the Chicago minimum wage increases and a statewide raise for all current in-home caregivers. While the State of Illinois had required managed Medicaid plans to honor these rates as scheduled, it needed to receive CMS approval in advance of implementing new rates in the state Medicaid program. \nCommenting on the announcement, Dirk Allison, President and Chief Executive Officer of Addus HomeCare Corporation, stated, \"We are pleased with the work of the Illinois state leadership and the favorable results of the budget negotiations and subsequent approval by CMS, which have provided clarity for overdue funding of the prior minimum wage increases. While we hoped to have received full funding immediately for minimum wage costs, we recognize the fiscal limitations of the state and appreciate the commitment to provide full funding by the end of their fiscal year. We expect to see a favorable impact on our Illinois operations after the rate increases become effective.\" \nForward-Looking StatementsCertain matters discussed in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forwa...

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