Question from a future provider based in Texas:
"Hello Team, thanks for all that you do and thank you for your quick response. To follow up with your previous message, we are debating which business is better for us to start. We are located in [City] Texas and we definitely believe there is a great opportunity for both home care and NEMT. We are definitely in agreement with you and Joel and don't want to become dependent on the brokers, but what is the difference between Medicaid brokers in the NEMT industry and waivers for home care. Aren't they both Medicaid dependent? Wouldn't we find ourselves in the same type of situation in the home care industry as we would NEMT?"
Answer:
Actually, no, not at all! The dynamic associated with Waivers in the home care industry is completely different from that of Medicaid brokers in the NEMT industry.
In the NEMT industry, Medicaid brokers are literally the "middle man." They are contracted with the state and various managed care organizations to manage Medicaid-based NEMT programs. In turn, they get a cut of everything. That is how they make their money, and that is why they are continuously fighting to squeeze transportation providers. The brokers make their margin on the back of NEMT providers who take on all of the liability, HR related obligations, and perform all the work.
In the home care industry, there is no broker for the waivers. Why? Because these agencies are desperate to get clients placed!
In Texas, there are 3 waiver programs, and currently there are over 75,000 people on waiting lists between the 3 waivers. This is exceptionally significant! In short, there is such demand, there are so many people waiting to get placed, that once you are credentialed and approved to work, they will throw business at you. These waiting list further mean that you don't need to hire or serve as a marketer yourself. The waivers will pretty much throw work at you in the form of waiting clients.
Following you approval and credentialing, if you are able to find and retail reliable caregivers, the waivers will absolutely keep you busy. They will not play games with you like Medicaid brokers in the NEMT industry. Why? Because those working at the waivers have no vested interest in playing games, they don't get bonuses for saving anyone money, or anything similar to the games played by Medicaid brokers.
I hope this helps. Let us know if you have any other great questions.
Thank you.
Best wishes, Daniel M. Murphy Online Manager | 
