MedicareFAQ
Medicare News

Direct Care Opportunity Act

4 min readApril 5, 2025
David Haass

Written By

David Haass

CTO & Co-Founder

Ashlee Zareczny

Reviewed By

Ashlee Zareczny
Gray upholstered high-back armchair with light wooden legs

What is the Direct Care Opportunity Act?

The Direct Care Opportunity Act is federal legislation designed to address the critical shortage of direct care workers - including home health aides, personal care attendants, and nursing assistants - who provide essential daily support to elderly and disabled Americans. The legislation focuses on improving wages, training opportunities, and career advancement pathways for this workforce.

Key Takeaways

  • The Direct Care Opportunity Act addresses the shortage of home health aides and personal care workers
  • Direct care workers provide essential support that allows seniors to remain in their homes
  • The legislation aims to improve wages, training, and career pathways for direct care workers

Why It Matters for Medicare Beneficiaries

Medicare beneficiaries who need home health services or personal care assistance are directly affected by the availability and quality of direct care workers. When there aren't enough workers, seniors may face delays in receiving care, be forced into nursing facilities earlier than necessary, or go without needed assistance.

The Direct Care Workforce Crisis

  • Direct care workers are among the lowest-paid workers in the U.S., with median wages around $15/hour

  • High turnover rates (often 50-60% annually) disrupt continuity of care

  • The U.S. will need over 1 million additional direct care workers by 2030

  • Many workers lack access to benefits, paid leave, or career advancement

  • COVID-19 accelerated workforce departures from the sector

Potential Impact of the Legislation

If enacted, the Direct Care Opportunity Act could increase wages and benefits for direct care workers, create training and certification programs, establish career ladders allowing workers to advance, and ultimately improve the quality and availability of home-based care for Medicare beneficiaries who want to age in place.

Does Medicare Cover Home Health Aide Services?
Yes. Medicare Part A and Part B cover medically necessary home health services, including skilled nursing care and home health aide services, when ordered by a physician for a homebound beneficiary.
How Does the Direct Care Worker Shortage Affect Medicare Beneficiaries?
Shortages can mean longer wait times for home health services, reduced hours of care, and in some cases, premature nursing home placement when home care isn't available.
What can I do if I can't find a home health aide?
Contact your local Area Agency on Aging, your Medicare Advantage plan's care coordination team, or a home health agency. Your doctor can also help coordinate Medicare-covered home health services.

Frequently Asked Questions

What is a Direct Care Worker?
Direct care workers include home health aides, personal care attendants, nursing assistants, and other workers who provide hands-on care and support to elderly and disabled individuals in their homes or care facilities.
How do I Find a Qualified Home Health Aide through Medicare?
Ask your doctor for a referral to a Medicare-certified home health agency. You can also search for agencies at Medicare.gov/care-compare.

Have Medicare questions?

Our licensed Medicare agents are available to help you find the right coverage.

Call (888) 335-8996