Thousands of patients, workers and families threatened by proposed cutbacks

Oct 12 2009

Congress is considering a measure that would drastically reduce Medicare dollars available to states for skilled nursing care. Such a move would be especially devastating to the states like Illinois where the Medicaid rates are substantially less than the actual cost of providing care.

"The average daily rate for providing 24-hour nursing, housing and meals to a Medicaid nursing home resident is about $118 per day. That is nearly $30 per day less than the actual costs to care for a Medicaid resident, according to filed cost reports required by federal law. Nursing homes here in Illinois have been able to maintain the quality of the services by using a portion of their Medicare and private pay payments to cover Medicaid costs," according to Pat Comstock, Executive Director Health Care Council of Illinois.

Two thirds of Illinois nursing home residents have Medicaid as their source of coverage. One third is funded by Medicare or other private pay sources. The financial burden to bridge the existing gap falls on many residents and their families who are already under tremendous financial stress given the state of our economy.

Comstock says: "If Medicare rates are reduced without a corresponding increase in Medicaid reimbursement in Illinois, providers will no longer be able to serve Medicaid residents properly." In short, those who can afford it the least will suffer the most if this plan is adopted.

Although providers in all states will feel the pinch, these cuts will have a dramatic impact on Illinois nursing home residents because the Medicaid rate in Illinois is so far below the cost of providing care that it has earned Illinois the honor of having the second lowest Medicaid rate in the nation. The Medicare cuts will not impact care provided in other large states to the same degree because they pay more to provide the very same care. Illinois' average Medicaid rate of $118 per day is $42 per day less than the national average.

This is a critical time and a critical issue for the 55,000 nursing resident in Illinois whose care is paid by the Medicaid program and for the people who love them. It is also critical for the 80,000 dedicated employees who care for them.

"We are looking to our Congressional Delegation for leadership but they need to hear from family and friends. Our elderly and the care they get is all of our business. They never turned their back on this country and we can't turn our backs on them."