Bush Plan to Cut Medicare-Financed Nursing Home Care Being Poorly Received at State Level

WASHINGTON, June 11 /PRNewswire-USNewswire/ -- As long term care leaders from around the nation continue to raise strong objections to the Bush Administration's proposed $770 million Medicare Part A national nursing home funding cuts, scheduled to go into effect in the coming weeks, recent bipartisan letters from key U.S. Senate and House members to Health and Human Services (HHS) Secretary Mike Leavitt are helping to galvanize local opposition to the misguided Medicare proposal, which holds the unfortunate distinction of being both harmful to seniors' care and wasteful of taxpayer dollars.

Norm Coleman (R-MN) and Kent Conrad (D-ND) in the U.S. Senate, and Earl Pomeroy (D-ND), Shelley Moore Capito (R-WV) and Shelley Berkley (D-NV) in the U.S. House of Representatives, are pointing out how the Bush Administration's Medicare funding reductions have caused them to be "deeply concerned that high-quality skilled nursing care for America's seniors will be threatened -- and reductions in spending of this magnitude would severely alter not only the quality of nursing home care, but also access to nursing home care for our nation's seniors."

Simultaneously, the American Health Care Association (AHCA) and Alliance for Quality Nursing Home Care are disseminating at the state level a new AHCA economic impact study finding the Administration's regulatory initiative will impose a net negative total economic impact of $4.5 billion for FY 2009, approximately $1.8 billion in lost wages, 43,530 lost jobs and approximately $661 million in lost federal, state and local tax revenue. (Text of Congressional letters and economic impact study available at www.ahca.org).

"In the final analysis, the Administration's ill considered change to Medicare policy would have unfortunate and unintended results both for patients, taxpayers and for the Medicare program itself," said Patti Cullen, President of the Care Providers ofMinnesota, inBloomington, MN. "Fortunately, Senator Coleman recognizes that the looming Medicare cuts are bad policy. It is perplexing why the Bush Administration is pressing forward with a policy initiative so detached from how this new Medicare regulation will negatively impact seniors' care in Minnesota." Current policy, she pointed out, saved Medicare $709 million in 2006 alone nationally, according to an independent analysis by Avalere Health, LLC.

In thankingNorth Dakota lawmakers Kent Conrad and Earl Pomeroy for helping lead opposition to the Medicare cuts, Shelly Peterson, President of the North Dakota Long Term Care Association (NDLTCA), inBismarck, ND, noted that Medicare cuts inWashington would have a severely negative impact on the strength and viability of North Dakota's Medicaid program. "Because nursing homes rely on Medicare to make up for chronic underfunding by the Medicaid program -- an average of $13 per day for every Medicaid beneficiary in nursing homes nationwide -- it is critically important Medicare reimbursements remain steady and consistent. The effort of Sen. Conrad and Rep. Pomeroy inWashington to protect our elderly constituents reflects the independent, bipartisan thinkingNorth Dakota needs, deserves and appreciates."

Rick Erb, President and CEO of the Maine Health Care Association (MHCA), stated, "During our recent trip to Capitol Hill, we made the point to our congressional delegation that front line caregivers throughoutMaine make a key difference in patient care -- and that the Bush Administration's plan now set to go forward presents a clear and present danger to caregiver jobs, to vulnerable seniors' care needs, and to the health and well being of Maine's economic and jobs base."

New Hampshire long term care leaders said the Administration's decision to move forward with Medicare cuts will undercut care in New Hampshire's rural communities. "Our rural communities have special challenges -- and the funding cuts will add to facilities' already onerous challenge of contending with rising wage rates and ever-higher energy prices," said John Poirier, President of the New Hampshire Health Care Association (NHHCA), inManchester, NH. Ted Lee, owner and operator of Hanover Hill Health Care Center, also inManchester, explained, "Medicare and Medicaid funding are inextricably linked -- and we inNew Hampshire are contending with a cumulative long term care funding environment that undermines quality improvement efforts, and jeopardizes our oldest seniors' health and well being."

SOURCE The Alliance for Quality Nursing Home Care

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