Caregivers urge wage transparency while providers warn of administrative burden in supported living cost report bill

Committee counsel Luke Wickham summarized House Bill 2,600 as a proposal to update the supported living cost‑report template, ensure compliance with federal law, and create a supported living work group that would develop Medicaid rate recommendations to promote equitable compensation for direct support professionals. The bill would require DSHS to provide administrative support for the work group and deliver a final report with findings and wage investment recommendations to the legislature by Dec. 1.

Provider groups told the committee the sector faces workforce shortages and turnover, but they opposed the bill as written. Melissa Johnson of the Community Residential Services Association said supported living already must file a comprehensive annual cost report and that HB 2,600 would impose additional administrative burden and accounting costs. She urged legislators to secure rate increases for staff rather than adding new reporting requirements.

Union and caregiver testimony countered that transparency is needed because past rate increases have not reliably reached frontline workers. "This industry exists solely because of direct support professionals... yet they are the one left behind," said Demas Nistorenko of SEIU 775, arguing HB 2,600 would require wage and benefit data to ensure public funds reach workers.

Direct support professionals described low wages and high turnover. Trent Mulder said his employer experienced an average 75% turnover rate for DSPs within a year, a pattern he attributed to low pay and lack of benefits. Catherine Kamau described holding two jobs despite years of service and urged the committee to ensure state dollars are used for wages and benefits. Provider Randy Hauck disputed some claims about pass‑through of prior rate increases, citing historical rate and wage increases and warning the bill would raise provider administrative costs.

Committee members did not take final action during the public hearing; members noted the workforce crisis and the need to balance accountability for pass‑through of funds with the administrative capacity of providers.