The Arc of Indiana

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For people with intellectual and developmental disabilities

The Case for a DSP Wage Increase

The Arc of Indiana is requesting a 5 percent increase in Medicaid service rates for the Family Support Waiver and the Community Integration and Habilitation Waiver.  75 percent of the revenue received from the waiver service rate increase would be passed through to increase wages paid to direct support professionals (DSPs). This is a request for an investment in the budget of $10 million each year of the biennium or $20 million total.

We are pleased to support the Economic Impact Study conducted by the Indiana University Public Policy Institute and commissioned by INARF that states:

  • DSP annual wages are fractionally above the federal poverty level for a family of three and are only 33% of the median Indiana family income.
  • A $10 million investment by Indiana in DSP wages leverages an additional $20 million of federal matching funds.
  • The net new investment by Indiana in DSP wages returns $4.16 of economic activity for each net new Indiana dollar invested.
  • This investment increases wages by $1,700 a year for DSPs who support some of our most vulnerable Hoosiers.

Learn More 

DSP Wage Increase Fact Sheet

DSP Wage Increase Infographic

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