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New Study of House Health Reform Bill: California Faces Over $3.7 Billion in Medicare-Funded Nursing Home Cuts Over Ten Years
Date:8/24/2009

Proposed Medicare Cuts Will Harm Seniors' Care, Place More than 4,000 California Nursing Staff Jobs in Jeopardy

Study Finds California Seniors Hit Hardest Nationally by Proposed Cuts

SACRAMENTO, Calif., Aug. 24 /PRNewswire-USNewswire/ -- A new American Health Care Association analysis of the pending House health reform bill, combined with the impact of a recently-enacted Medicare regulation cutting Medicare-funded nursing home care by $12 billion over ten years, finds seniors in California requiring nursing and rehabilitative care will face total funding cuts of $3.78 billion over that same time period, which equals the highest state cut across the 50 states. Nationally, the study finds, seniors' Medicare cuts will total $44 billion over ten years, prompting California's long term care community to warn that California's seniors' care needs are endangered by the House bill, as are the jobs of more than 4,000 caregivers in California alone.

"Arguments being made that seniors' benefits will not be reduced by the pending health reform bill in the U.S. House of Representatives ignore the fact that when Medicare cuts provider reimbursement, providers, in turn, are forced to cut staff because labor expenses comprise 70 percent of facility costs. Cutting staff within a facility has a direct, immediate, negative impact on patients and their care - and that is what the House bill will do, " said James Gomez, CEO and President of the California Association of Health Facilities (CAHF). "The bottom line is that California's seniors' Medicare-funded nursing care will be substantially undermined by the current reform bill, and we urge Federal lawmakers to use the last two weeks of the August recess to revise its plan to ensure seniors are helped by the reform measure - not hurt by it."

The new analysis of the House bill's Medicare funding
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SOURCE California Association of Health Facilities
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