Your June 24 editorial criticized recent legislation to increase wages for Maine’s direct care workers on the grounds that such public intervention in the workplace suspends “the laws of supply and demand.” I suggest that you do not understand that long-term care is largely not a free market industry and, by necessity, must be treated differently than other private businesses.

As you said, the market system allocates scarce resources, but it does not necessarily do so equitably without public intervention. Thus, we have chosen as a state to ensure that there is quality long-term care paid through public revenue for our most vulnerable citizens who cannot pay for that service. And 80 percent of that service is provided by frontline workers such as CNAs, personal support specialists and home health aides.

Maine is now the “oldest” state in the nation. Demographic trends will put increasing pressure on providers of long-term care to attract these frontline workers who care for elders and adults with disabilities in nursing homes, assisted living facilities, and in their homes. We are also a state with many low-income families that do not have the resources to pay for this care privately. Therefore, three-quarters of long-term care is provided through the MaineCare program. Many middle class families will also need this safety net because they will spend down their assets and eventually require public assistance.

There is already a shortage of workers in this field. Home care and assisted living providers must compete with T-Mobile, Burger King, and Shaw’s for entry level workers. Those companies pay better wages. In the private market, when the demand for workers exceeds the supply of workers, businesses can increase wages and benefits to attract more workers into their business. They may opt to cover the increased payroll with price increases or by taking a cut in profit. But long-term care providers cannot simply increase the “price” of care to cover increased wages and benefits because the service is primarily paid with public funding controlled by state policymakers.

One example is the group of 1,000 consumer-directed workers who provide assistance to consumers with disabilities in their homes. They are paid through the MaineCare program and their wage rate is determined by the Legislature. The recent passage of LD 1991 increased this wage rate for the first time in eight years from $7.71 to $10. High time by free market standards! There are many other direct care workers making near the minimum wage around the state, especially in northern and western counties and Downeast. The study – LD 1934 – that was recently enacted will research the current wage rates in all of the direct care settings and determine how we can better ensure that providers can pay competitive wages and attract the workers they need all across the state.

That may well lead to a recommendation for greater public investment in this sector. And if you are in the three-quarters of long-term care consumers that need MaineCare to stay safe and healthy, or if you are one of the thousands of family members who rely on MaineCare to take care of your loved ones, or if you are a citizen who understands the importance of public services to provide what the private market does not, you will want your legislator to support such an investment.

Lisa Pohlmann, associate director

Maine Center for Economic Policy, Augusta