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New National Study Spotlights Importance of Federal Medicare Funding to Propping-Up Seniors' Deteriorating State Medicaid Benefits and Services
Date:12/8/2009

eighted average 2007 margin from the two government funded programs combined is a negative 1.2%.
  • The Medicaid reimbursement outlook for 2010 and 2011 is bleak. It is worse than any other year in the last seven in which this annual Report has been compiled due to unprecedented state budget deficits and expiration of federal stimulus funds at the end of 2010.
  • In 2009, for every dollar of allowable cost incurred for a Medicaid patient, the Medicaid program reimbursed, on average, approximately 92 cents.
  • States continue to rely heavily upon provider taxes to fund nursing home reimbursement. However, most states with provider taxes chose not to increase nursing home reimbursement nor lower the provider tax rate as a result of a temporary higher federal match rate on these tax funds under the American Recovery and Reinvestment Act of 2009 (ARRA). Instead, the savings from a higher federal match rate on provider tax funds appears, in most states, to have gone to subsidize state budget deficits.
  • States continue to redirect more of their long-term care budgets to non-institutional services. This heightened competition among long-term care programs for limited state resources combined with sagging state economies has dampened 2010 Medicaid rate increases. This negative trend will likely continue in 2011 as the economic outlook for states remains bleak and because of the expiration of the higher temporary ARRA federal match rates (FMAP) as of January 1, 2011.

    • SOURCE American Health Care Association


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    SOURCE American Health Care Association
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