NOTICE
DSHS has received questions about state system generated letters that you may have received regarding the Consumer Directed Employer (CDE) rate of $31.32 which is paid by the state of Washington to Consumer Direct Care Network - Washington. This amount includes an hourly labor rate for IP wages, benefits, taxes and other employee related expenses and an administrative rate for the employer functions CDWA is required to provide under their contract. This is not a rate specific to any particular caregiver different caregivers have different wage rates based on their career cumulative hours and other factors like differentials and overtime pay. This is the standard single rate paid to the CDE for all hours worked by all caregivers, which is a weighted average rate that accounts for those differences.
As an IP, your individual rate of pay will remain the same as it is today upon transition to the CDE. The expenses that the State of Washington previously has been responsible for paying to cover benefits described in the Collective Bargaining Agreement and employer taxes are now paid directly to the CDE as part of the hourly rate. As the employer, CDE will be responsible to manage these employee related expenses.
The following is an explanation of what is included in the rate.
Q. How much of the CDE’s full rate of $31.32 will go towards covering the CDE’s administration fees?
A. Only $2.23 out of the CDE’s full rate will cover the CDE’s administrative costs. This rate reflects initial start-up costs and will be reduced by $0.42 per hour in approximately 9 months from full transition.
Q. If the CDE’s full rate is $31.32, how much will go towards the IP’s wages and benefits?
A. After deducting the CDE’s administrative rate of $2.23 from the full rate of $31.32, the remaining $29.09 goes towards the IP’s wages, insurance, retirement, taxes, paid time off (PTO), training, overtime (OT), holiday pay, paid family leave, and the referral registry. As noted above this rate is not specific to a particular caregiver, but is a weighted average rate paid to the CDE for all hours worked by all caregivers.
WELCOME WASHINGTON INDIVIDUAL PROVIDERS!
Phase 1 of the transition to the Consumer Directed Employer (CDE) program is underway. Finish your hiring by January 24, 2022. Phase 2 will begin in early January 2022. Unsure which Phase you’re in? Review our hiring phases map.
Have questions? Click the chat icon at the bottom right of your screen, email InfoCDWA@ConsumerDirectCare.com, or call 866-214-9899.
Need help completing the hiring process? We are hosting in-person hiring support sessions throughout the state. Visit our webinar and events calendar to register for a session near you.
Hot Topics
- The CDE & IP Contracting Webinar - Thursday November 4, 2021, 9:00-9:30am – https://attendee.gotowebinar.com/register/3702378226013645070
- Register for upcoming public webinars at https://www.consumerdirectwa.com/schedule/
- Questions? Email the CDE Project Team directly CDE@dshs.wa.gov
- CDWA Overlay – Hiring Phases by County 08/2021
- FCC Broadband Benefit: Eligible households could receive $50/month for broadband expenses and $100 towards a laptop, PC or, tablet. Learn more and apply at https://www.fcc.gov/broadbandbenefit.
Beginning winter of 2021, the Consumer Directed Employer (CDE) will become the legal employer for Individual Providers (IPs) for in-home personal care. As the legal employer, the CDE will assume all IP employer related responsibilities that are currently managed by DSHS and AAAs.
Why a CDE?
The move to a Consumer Directed Employer (CDE) model will shift the IP employment-related activities to the CDE and will help DSHS realize the goal of increasing the capacity of DSHS/AAA case management, customer service, and other social services staff to focus on core case management activities. The contracted CDE vendor is Consumer Direct of Washington (CDWA).