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

$27.29

4 Minnesota $24.96

5 Vermont $24.32

6 New Hampshire $22.99

7 Missouri $22.62

8 Delaware $22.21

9 Washington $20.71

10 Massachusetts $19.85

In releasing the new report at a Capitol Hill briefing on pending FY 2008 health and budget issues, Bruce Yarwood, President and CEO of the American Health Care Association said it is essential for policymakers, key legislative staff and all long term care stakeholders to understand the growing inter-dependence between Medicaid and Medicare -- and how according to the study's findings, the long term care sector operates at a 2.5% negative margin when factoring both Medicare and Medicaid funding into the overall long term care financing equation.

"As federal and state lawmakers consider cuts or freezes in either Medicare or Medicaid the significance of the overall negative operating margin cannot be discounted," Yarwood added. "These findings are further evidence that policymakers and the Medicare Payment Advisory Commission should take into account the symbiotic nature of Medicaid and Medicare financing as key healthcare funding decisions are made."

In further explaining the role of Medicare in subsidizing Medicaid shortfalls, Joseph Lubarsky, the study leader said, "Medicare continues to play an important role in the cross-subsidization of Medicaid deficits... un-reimbursed Medicaid allowable costs are projected to exceed $4.4 billion, and providers must continue to substantially rely on Medicare prospective payment in an attempt to break even from government funded programs. Any major slowdown in state economies or changes in federal policies or interpretations regarding federal revenue enhancement programs could easily reverse the positive trends of the past few years."

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SOURCE Care Providers of Minnesota
Copyright©2007 PR Newswire.
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