Source: Nicole Wallace, Chronicle of Philanthropy, April 29, 2012
Across the country tens of thousands of nursing assistants, child-care employees, home-health aides, group-home employees, people who work at after-school programs, and others provide vital services at health-care and human-services charities. The work is physically and emotionally taxing, yet because wages are so low, these employees face many of the same financial challenges as the people they serve.
Nonprofit employers say they want to pay frontline workers more but can't because of low government-reimbursement rates and the challenge of raising money from donors to improve wages....Volunteers of America Greater New Orleans employs more than 160 personal-care attendants who provide services that allow people with intellectual disabilities to live on their own. The average wage for those positions is $8.70 an hour.
In 2006, Louisiana increased its Medicaid reimbursement rate to $16 an hour, which allowed the charity to increase wages to their current rate, says Jim LeBlanc, head of Volunteers of America Greater New Orleans. But the state has since lowered the rate to $14.68.
In addition to covering the attendants' wages, the charity uses the reimbursement to pay for workers' compensation and liability insurance, supervisors to oversee the attendants, and other program costs.
Workers do not currently receive health insurance, but Mr. LeBlanc is already anticipating that the charity may have to provide it in 2014 under the new federal health-care law....


