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U.S. Seniors’ Nursing Home Care Threatened By “A Perfect Storm Wallop”   

“Medicare Cuts That Went into Effect October 1 Making Tough Times Get Even Worse”
Susan Feeney
202-716-1110
FOR IMMEDIATE RELEASE
10/9/2009 

Washington, DC – As Congress continues to debate health care reform, nursing homes and the seniors under their care are facing an unprecedented threat – not just from deep cuts to Medicare-funded nursing home care that will occur as part of the reform process itself, but also from the worsening state Medicaid funding crisis and the ongoing national recession. Combined with federal Medicare cuts of up to $16 billion over ten years put in place by the Obama Administration on October 1, seniors face what the media is unfortunately calling “a perfect storm wallop.”    

The 10/6 Dubuque Telegraph Herald reports, “The nation's nursing homes are perilously close to laying off workers and cutting Services – possibly even closing – because of a perfect storm wallop… A Medicare rate adjustment that cuts an estimated $16 billion in nursing home funding over the next 10 years was enacted at week's end by the federal Centers for Medicare and Medicaid Services – on top of state-level cuts or flat-funding that already had the industry reeling. And Congress is debating whether slashing billions more in Medicare funding as part of health care reform. The funding crisis comes as the nation's baby boomers age ever closer toward needing nursing home care. The nation's 16,000 nursing homes housed 1.85 million people last year, up from 1.79 million in 2007, U.S. Census Bureau figures show.”

A 10/7 editorial in the Bismarck (ND) Tribune entitled “Nursing Home Care is Needed” says, “One of the most difficult decisions adult children face is how to care for aging parents who grow to the point of not being able to care for themselves. The options involved with adult care aren't always pleasant, or plentiful, and one that seems to be in peril is the nursing home option. The Associated Press reported Monday that Congress might slash billions of dollars in Medicare funding as part of health care reform, following a $16 billion cut already for nursing home funding over the next 10 years. All of this, by the way, is happening when the need for nursing care facilities will be increasing. The nursing home care industry as a whole, however, seems to be heading toward a crisis. Some facilities will likely have to close their doors. Those that remain open will likely reduce service options. Again, our elderly deserve better. As the health care reform debate continues in Washington, North Dakota's delegation shouldn't forget about representing our elders, who are our treasures.”

WEAU in Eau Claire, WI reports on 10/7 reports “Nursing homes are struggling across the state, and many are already in bankruptcy. Seventy-five nursing homes have shut down over the past decade in Wisconsin -- and administrators say more will follow if they continue to be underfunded. Wisconsin is now ranked the worst in the country for reimbursing the cost of medical care to nursing homes and other elderly caregivers. Administrators say that's why 17 percent of nursing homes in Wisconsin are currently going into bankruptcy – and why many more may follow. Nursing homes have faced funding challenges for years. But many administrators say Medicare cuts that went into effect October first – are making tough times get even worse.”

A 10/8 Sarasota Herald-Tribune news story, “Medicaid Shortfall Looming,” reports, Florida is heading for a cliff when it comes to Medicaid spending. The federal government has significantly increased its support for Medicaid, the health care program for the poor and disabled, in Florida during the economic recession. But the extra funding is scheduled to dry up in December 2010, leaving Florida perhaps more than $1 billion short and facing the prospect of having to cut back critical medical services for some of the state's poorest and sickest residents… In Florida, the Medicaid shortfall will be part of an overall budget crisis that will force lawmakers to cut major services or else find new revenue sources to offset a shortfall that could approach $2.6 billion in the 2010-11 budget… "The challenges we face as a state are definitely sobering," said Representative Dean Cannon, R-Winter Park, chairman of the House Select Policy Council on Strategic and Economic Planning.

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.

© 2010 American Health Care Association