A new PHI PolicyWorks analysis finds that a growing number of states report that personal and home care aides are receiving wages that put them at risk of poverty.

In 2009, 36 states reported average hourly wages that fell below 200 percent of the Federal Poverty Level, up from 32 states in 2008, according to the analysis reported in PHI’s updated State Chart Book on Wages for Personal and Home Care Aides (pdf).

Wages below 200 percent of the federal poverty level ($10.42) are low enough to qualify workers for many state and federal public assistance programs.

“That fully two-thirds of states are now showing these kinds of low wage levels for personal care workers is very disappointing,” said Dorie Seavey, PHI director of policy research.

“These very low wages are a significant obstacle to meeting the country’s rapidly growing demand for personal assistance services,” Seavey said. “They also jeopardize the economic security of hundreds of thousands of caregivers who make it possible for others to live independently.”

Data Spans 10 Years

The updated Chart Book tracks wages in all 50 states and the District of Columbia, and for the first time presents a full decade of data from 1999 to 2009.

Other highlights include:

• After adjusting for inflation, national wages for home care aides and personal care aides (PCAs) essentially remained unchanged over the 10-year period.
• In 2009, within the continental U.S., state nominal median wages ranged from $7.50 in Texas to $12.01 in the District of Columbia; real median wages (in 1999 dollars) ranged from $6.01 to $9.66.
• Over the 10-year period, 15 states showed a decline in real median wages for these workers. Eight states saw real wages fall by 5 percent or more.

“For the first time, with the passage of health reform, the need to improve the quality of personal care aide jobs is receiving concerted federal attention,” said Steve Edelstein, PHI national policy director.

Informing Health Reform

“PHI’s PCA wage analysis is very timely. It can inform the federal government’s growing concern with improving the quality of these jobs and ensuring that there is a sufficient PCA workforce to meet future demand,” Edelstein said.

The national health care law includes numerous opportunities (pdf) for PCAs, including:

• the formation of a PCA Workforce Advisory Panel that will be charged with examining and advising on PCA workforce issues, including wages, benefits, and access to services;
• and the awarding of grants to six states to develop PCA training demonstration programs that emphasize core competencies and certification of these workers.

– by PHI Policy Team