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New National Medicaid Study: Minnesota Under Funds Seniors' Nursing Home Care $167 Million Annually
Date:10/4/2007

Analysis Finds Minnesota's Seniors Face Fourth Highest Shortfall Nationally;

Per Patient Day Shortfall is $24.96.

WASHINGTON, Oct. 4 /PRNewswire-USNewswire/ -- A new independent analysis of the nation's Medicaid program by the accounting firms BDO Seidman/Eljay,LLC estimates states are under funding the actual cost of providing seniors' critical nursing home care by at least $4.4 billion annually -- representing a dramatic 45 percent increase from 1999 ($9.05) through 2007. Minnesota's Medicaid rate currently under funds senior's care by $24.96 per patient day, well above the average national shortfall of $13.15 per patient day.

The new study found that Minnesota's seniors face the forth highest shortfall on a national basis. The new study also found that the states with the greatest disparity between the actual cost of providing quality care and Medicaid reimbursements are, in order of severity, Illinois, New Jersey, Wisconsin, Minnesota, Vermont, New Hampshire, Missouri, Delaware, Washington and Massachusetts.

"The long term trend lines show an unmistakable growth in the disparity between the cost of providing quality care and the actual amount reimbursed by government," said Patti Cullen, President and CEO, Care Providers of Minnesota. "One of the unfortunate results is that our ability to find, train and retain key direct care staff is compromised, and ongoing quality improvement initiatives are placed in jeopardy," Cullen continued. "This problem is national in scope, and requires a national solution that starts with reforming the entire Medicaid and Medicare financing structure."

According to the BDO Seidman/Eljay analysis, seniors' Medicaid-financed long term care needs suffer the highest cost/reimbursement rate disparities in the following states:

Rank State Per Patient Daily Shortfall

1 Illinois $30.21

2 New Jersey $28.64

3 Wisconsin
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SOURCE Care Providers of Minnesota
Copyright©2007 PR Newswire.
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