Washington, DC – As the National Governors' Association (NGA) convenes today to examine the significant challenges faced by the nation’s Governors in regard to meeting the growing health care needs of their oldest, most vulnerable constituents, the American Health Care Association (AHCA) and Alliance for Quality Nursing Home Care praised the NGA for taking the time to focus on long term care. The organizations pointed out those Governors also have an enormous stake in helping to defeat five-year, nearly $24 billion cuts to Medicare-financed nursing home care in the Bush Administration’s proposed FY 2009 budget.
"We applaud the NGA's efforts to examine our nation's long term care system and their interest in taking action to ensure the system is sustained for our nation’s most vulnerable seniors," stated Bruce Yarwood, President and CEO of AHCA. "As long term care providers, it is our responsibility to provide the highest level of care to our patients and to ensure we have the well-trained staff to provide such care. However, state and federal policy makers must recognize that without adequate Medicare and Medicaid payments for care services, the well being of our nation’s most frail, vulnerable and disabled citizens are jeopardized. We recognize the significant challenge faced by Governors when it comes to meeting the increased demand for long term care services, and we intend to offer positive solutions to help address this situation."
Alan Rosenbloom, President of the Alliance, added that while part of the intended discussion at the NGA session headed by Governors Jim Douglas (R-VT) and Jon Corzine (D-NJ) will be devoted to improving long term care quality and access, Governors' efforts to do so in their home states will be significantly impeded if federal Medicare cuts are passed into law by Congress: "Sustaining a robust, stable federal Medicare payment policy is the only means by which to supplement a Medicaid system that consistently under funds the actual cost of providing quality care. The Administration's Medicare cuts are especially worrisome as Governors brace for an economic downturn, which historically squeezes Medicaid-financed long term care programs."
Yarwood and Rosenbloom said a major 2008 federal legislative priority for the long term care profession will be to focus more attention on how failing to include Medicaid underfunding in calculating the adequacy of federal Medicare funding is untenable – and pointed to a recent independent study by the national accounting firm, BDO Seidman, which finds Medicaid under funds long term care by $4.4 billion annually – an increase of 45% from 1999 to 2007. This statistic, said the long term care leaders, demonstrates how Governors are already struggling to cope with a long term care financing structure requiring substantial structural modification.
In the short term, Yarwood and Rosenbloom noted, it is crucial for Congress to reject the proposed federal Medicare cuts in order to maintain stable Medicare funding – since this cross-subsidizes Medicaid losses. Unfortunately, they added, since the Medicare Payment Advisory Commission (MedPAC) is not charged with looking at overall long term care funding operations, its recommendation to Congress regarding Medicare are fatally flawed and MedPAC’s charter should be amended to require examination of the entire marketplace in formulating funding recommendations.
In the longer term, the AHCA and Alliance leaders urged the NGA as well as the major 2008 presidential candidates of both parties to investigate more sweeping reforms like those unveiled last month by AHCA and the Alliance. The comprehensive long term care reform plan, (available at www.ahca.org and www.aqnhc.org) prepared in conjunction with Avalere Health, advocate the creation of a consumer-oriented system designed to bring greater private resources into the system, and to establish a sustainable, patient-centered long term and post-acute care system. By giving consumers financial tools and information, they would be able to make the choices they need and plan effectively for their long term care needs. This in turn will bring more private resources to alleviate the pressures on a publicly financed system.
"Implementation of our proposed plan would help bring about a more reliable, rational long term and post-acute care financing system that would be enormously beneficial to helping Governors gain more control and predictability over long term care spending, and we hope to work with the NGA throughout 2008 to advance this proposal," Yarwood and Rosenbloom said when unveiling the plan at the National Press Club.
As the nation’s largest association of long term and post-acute care providers, the American Health Care Association (AHCA) advocates for quality care and services for frail, elderly and disabled Americans. Compassionate and caring employees provide essential care to one million individuals in our 11,000 not-for-profit and proprietary member facilities.