Wisconsin's Direct Care Workforce (DCW) initiative continues to move forward, with state partners reporting that they are in the final stages of calculating the second round of DCW payments. MCOs remain on track to distribute payments to providers by July 3.

While the overall timeline remains on schedule, there is a possibility of a brief delay for providers participating through iCare. Officials are continuing to verify and review the data needed to accurately calculate payment amounts and want to ensure they have the most complete and accurate information before finalizing distributions. If a delay is necessary, it is expected to be minimal and limited to the time required to complete the verification process.

The focus remains on ensuring payments are distributed accurately while maintaining the planned timeline for providers across the state.

In addition to the payment update, LeadingAge Wisconsin is closely monitoring a recently released proposed rule from CMS related to MCOs. The proposal includes several positive changes for Wisconsin, particularly concerning hospital assessments and access payments. However, the rule remains under review and has not yet been finalized.

If adopted in its current form, the proposal could have implications for Wisconsin's Direct Care Workforce funding structure beginning in 2028. One notable provision would limit allowable state-directed payments, with fee schedules becoming the primary permissible mechanism under the proposed framework.

The proposed rule is currently open for public comment through the CMS process, and we are encouraging members to submit comments using this link. While the long-term effects remain uncertain until the rule is finalized, discussions are already underway regarding possible strategies for 2027 and beyond should the proposal move forward.

As both the second DCW payment distribution and federal rulemaking process continue to develop, providers are encouraged to stay informed through communications from their Managed Care Organizations and industry partners. Additional updates will be shared as more information becomes available.

If you’d like to learn more about the proposed rule, please review this fact sheet.