A new report by Eljay LLC (A Report on Shortfalls in Medicaid Funding for Nursing Home Care, © 2011 Eljay, LLC. All rights reserved), on behalf of the American Health Care Association, states that the unprecedented state of budget deficits will result in historically low Medicaid nursing home reimbursements. Because of this, the report projects nursing homes will average a $19.55 shortfall, per patient, per day in 2011, up from $16.54/day in 2009.
Many nursing facilities have counted on profitability from Medicare patients to offset the profit they lose on Medicaid patients. In 2012, Medicare payments to nursing homes will be scaled back, effectively eliminating this “profitability patch.”
Recent LTCQueen blogs have predicted that the quality of government financed long-term care would diminish; here’s evidence that it will, sooner than many are willing to admit. These tragic circumstances make long-term care insurance ownership more compelling than ever.