CMS Increases Wages to $15/Hour for HealthCare.Gov Call Center Staff

October 18, 2021 - The minimum hourly wage for Medicare and federal health insurance marketplace call center staff has increased to $15 an hour, according to a recent CMS announcement.

The federal agency announced that it has increased the rate for the nearly 12,000 HealthcareCare.gov call center staff to help the agency “attract and retain top talent ahead of the upcoming Open Enrollment periods and ensure high levels of customer service are delivered.”

Call center capacity has already doubled from its usual 6,000 employees because of the Open Enrollment periods. Open enrollment for Medicare started on October 15 and will end on December 5, while open enrollment for the marketplace will launch November 1 and end on January 15.

“Thanks to the committed workers at our call centers, anyone who is interested in signing up for health coverage has access to experts to answer their insurance questions any hour or day of the week,” HHS Secretary Xavier Becerra stated in the announcement. “By increasing their hourly minimum wage to $15 per hour, the Biden-Administration is improving the economic security of families. This is not only a well-deserved pay raise for the call center employees, but also a boost for our local economies.”

CMS intends for the wage boost to make CMS programs more competitive in the cities where call centers are located. The call centers are available 24 hours a day, seven days a week during open enrollment periods.

Being competitive has become a top challenge for most employers, and healthcare has not been immune to the shift in the economy. Just recently, the Bureau of Labor Statistics reported that healthcare employment fell by 17,500 jobs last month, after a decline of 4,900 jobs in August. Hospitals lost over 8,000 jobs, while nursing and residential care facilities lost 37,600 jobs.

The healthcare job shortages are putting pressure on fields like primary care, which fear that the loss of talent and jobs will decimate practices, leaving patients without easy access to care in some communities.

Provider organizations are having to reevaluate their workforce strategies to remain competitive, especially as their facilities have once again reached capacity because of the resurgence of COVID-19 due to the Delta variant.

Like CMS, some hospitals and health systems are increasing wages to attract and retain talent at this time. Avera Health in South Dakota, for example, recently announced that its minimum wage increased to $17 per hour. The wage increase is part of a $50 million investment in its workforce, which also includes pay increases of at least $2 per hour for current employees, appreciation gifts, no annual premium increases for health and dental insurance, and a cash payment of $1,000 for employees who refer someone outside of the system.

“Avera recognizes that people are our most valued resource. The 20,000 employees of Avera comprise an amazing team,” Bob Sutton, president and CEO of Avera Health, said publicly. “Many people have joined Avera because they want to be part of something bigger than themselves and make a positive difference in the lives of others. That’s the Avera mission and we invite like-minded individuals to consider a career with Avera.”

UVA Medical Center, Centura Health, and Saint Luke’s Health System have also made similar investments in their workforce, as staffing, retention, and compensation become top priorities for hospitals and health systems in need of qualified professionals.

Non-profit public policy organization Brookings Institution reported last year that median wages for healthcare support, service, and direct care jobs—which outnumber healthcare practitioner and technician jobs—was just $13.48 an hour before the pandemic hit. Home health and personal care workers were paid even less, with a median hourly wage of $11.57.

The wages were “well short of a living wage and far lower than the median pay of doctors (over $100 per hour) and nurses ($35.17 per hour),” Brooking’s Molly Kinder wrote.

“The wages are so low that nearly 20 [percent] of care workers live in poverty and more than 40 [percent] rely on some form of public assistance. These fields are some of the fastest-growing of all occupations, with more than a million new jobs projected by 2028,” Kinder continued.

The Biden-Harris Administration has committed to increasing the federal hourly minimum wage to $15 per hour by Jan. 30, 2022. The increase in wages will only apply to federal contractors, such as CMS programs.