Weisberg Law Blog

Will the bailout plan hurt Medicaid and nursing home care?

Congress and the President have been working hard on a massive bailout plan that has swelled to more than $800 billion dollars.  Lots of businesses, lobbyists, and individuals are wondering “what’s in it for me?”  Well, if you or someone you love counts on Medicaid for nursing home or long term care then you might be in for a surprise.

There are 2.9 million Americans working in the long-term care sector and millions more who are residents in these facilities.  With more and more Americans reaching the point in their life that they find long-term care necessary, the burden on state Medicaid funds is not trivial.  In addition, the growing gap between what Medicaid covers and the true cost of care has left nursing homes and long-term care facilities are in an especially vulnerable position.  Considering that 65% of nursing home residents and 12% of long-term care facility residents rely on Medicaid, any cuts or restrictions on Medicaid in the stimulus bill could be devastating.

In 2008 one study showed that Medicaid underfunded nursing home patient care by $13 per person per day, a total of $4.4 billion nationwide.  Things aren’t getting any better, as the economic downturn has states squeezing their Medicaid programs by narrowing eligibility, shrinking benefit packages, and slashing or substantially delaying payments to providers.

The proposed stimulus bill could make things even worse for patients and providers.  Some proposed wording in the bill would open up eligibility requirements in states that have tried to narrow them.  While this may be good for those currently unable to receive aid because they don’t meet the stricter eligibility requirements, it could prove troublesome for cash-strapped states that could be tempted to further cut or delay payments to providers.

Lobbyists are hard at work trying to make sure that nursing homes and long-term care facilities are protected in the stimulus package.  Without adequate and timely payments, facility residents could see a decrease in services and quality of care.  The specter of abuse and neglect always raises its ugly head when facilities are underfunded, so for residents’ sake we hope our leaders and representatives can work this out.  Only time will tell what provisions and wording will be included in the final stimulus package

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