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New Analysis of Bush FY 2009 Budget: Texas Medicare Cuts 4th Highest in Nation
Date:3/19/2008

Proposed Medicare Cuts Further Undermine Texas' Struggling Medicaid Program

AUSTIN, Texas, March 19 /PRNewswire-USNewswire/ -- In commenting on a new analysis of the Bush Administration's proposed budget and regulatory changes that will cut Medicare-financed nursing home care in Texas by $104.9 million in the year ahead - the 4th highest level of cuts in the nation, and which reduces funding by $17.22 per patient, per day - national and state long term care leaders today said the proposed Medicare reductions in Washington will further weaken Texas' struggling Medicaid program, which has slipped to 49th in the nation in terms of reimbursement rates, according to independent data from the national accounting firm BDO Seidman, and other sources.

"The combined impact of the Bush Administration's proposed Medicare budget cuts and associated regulatory changes will severely jeopardize the growing complex care needs of Texas' oldest, sickest seniors - especially when combined with the existing weakness of Texas' Medicaid program," stated Bruce Yarwood, President of the American Health Care Association (AHCA), based in Washington, D.C. "In addition to aggressively fighting these Medicare cuts in Washington, we are taking this policy battle to the state level to ensure long term care consumers, state lawmakers, and the public at large understand how the growing interdependence between Medicare and Medicaid financing is creating enormous strains on seniors' overall care needs."

As the Texas Medicare cuts rank 4th nationally in size, California ranks first with total cuts of $142.6 million for FY 2009; Florida ranks 2nd at $138.2 million; New York ranks 3rd at $113.2 million; Ohio ranks 5th at 100.6 million. The data was computed by the AHCA Reimbursement and Research Department using Office of Management and Budget (OMB) data from the Bush Administration's FY 2009 Budget, and data from the Centers for Medicare & Medicaid Services (CMS). '/>"/>

SOURCE Texas Health Care Association
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