Addus HomeCare

Personal care rates are largely set by states or negotiated with managed Medicaid, which curbs unilateral price increases. Addus can achieve effective pricing through state rate wins, favorable MCO mix, and contractual escalators, but not classic discretionary pricing.

Examples include Texas’ 9.9 percent rate increase effective September 1, 2025, and Illinois rate support, both helpful but policy-driven. Hospice and home health pricing are influenced by Medicare rules.

Upcoming CMS Access Rule requirements on 80 percent caregiver compensation will likely hard-cap margin expansion potential in personal care, raising the bar on operating efficiency. Taken together, pricing capacity is present but mostly externally mediated, not company-driven.