Today, the Centers for Medicare & Medicaid Services (CMS) released guidance on the home and community-based services (HCBS) payment adequacy reporting requirement, which was finalized in 2024 rulemaking. In this guidance, CMS refers to it as the “direct care worker compensation reporting” requirement. The guidance summarizes policy clarifications provided in the 2024 final rule and addresses additional questions that have been raised by states, providers, and other interested parties since the rule was finalized. The specifications include a description of the reporting requirement, calculation instructions, common data sources, and other useful information to support consistent and accurate state data collection and reporting.