Navigation Links
Reform of Long-Term Care System Could Save Billions

WASHINGTON, April 21 /PRNewswire-USNewswire/ -- The federal government could save upwards of $35 billion over ten years if it enacted a policy proposal to reform financing of long-term and post-acute care, said Avalere Health in a new report released today.

Avalere built a new proprietary model to assess the federal costs of change in long-term care policy, using methods and assumptions similar to those employed by the Congressional Budget Office. Using the model, Avalere assessed a proposal developed by the American Health Care Association, the National Center for Assisted Living, and the Alliance for Quality Nursing Home Care. The focal points of the proposal are:

  • Creation of a new, site-neutral Medicare payment system for post-acute care based on patients' conditions and medical needs. Decisions would be based on more evidence using a standardized patient assessment tool.
  • Creation of a fully federalized, voluntary, catastrophic long-term care (LTC) benefit. Medicaid would no longer pay for LTC for seniors.
  • An increased amount of private funds used for long-term care services. Individuals would share the cost burden of the new LTC benefit in the form of a personal responsibility allowance, scaled to income.

Reforming the Medicare post-acute payment system in this way would likely generate $81 billion in savings over 10 years of operation due to more cost-effective placement of Medicare patients in post-acute care settings. Those savings would offset the new costs of launching a consistent federal LTC program, which by Avalere estimates would cost $46 billion over 10 years. The total 10-year program savings is $35 billion. A full set of assumptions and methods is published in the report.

Current Medicare payments for post-acute medical care -- the kind of care given immediately after a stroke or major fall -- are first based on where the care is provided, not on the actual patient's condition and needs. Additionally, in 2006, the nation spent about $230 billion on a LTC system that inadequately protects today's senior population from the financial devastation of a long-term disabling condition such as Alzheimer's disease or stroke. Seniors often rely on their savings, home equity, or children to pay for their care; in the current economic climate these sources of financing have become increasingly unstable.

"The health reform goals debated today -- achieving greater efficiency and value for the healthcare dollar, adding discipline to Medicare spending, and better use of evidence to improve patient experience -- are inextricably tied to improving long-term and post-acute care in the U.S.," said Anne Tumlinson, a vice president at Avalere Health and lead author of the firm's new report. "Any meaningful reform effort will involve a careful analysis of choices, policy options, and trade-offs."

The report, "Post-Acute and Long-Term Care Reform/Estimating the Federal Budgetary Effects of the AHCA/NCAL/Alliance Proposal," was prepared by Avalere Health. The American Health Care Association, National Center for Assisted Living, and Alliance for Quality Nursing Home Care provided financial support for this research. Avalere maintained sole discretion with regard to methods and interpretations of findings, and the authors are solely responsible for the content of this analysis.

SOURCE Avalere Health
Copyright©2009 PR Newswire.
All rights reserved

Related medicine news :

1. Healthcare Reform Tops Agenda for Hundreds of Heart Disease and Stroke Survivors on Capitol Hill
2. Mexicos health insurance success offers lessons for US reforms, Lancet study suggests
3. Health-care reform should start with paying evidence-based financial incentives to doctors
4. Health Reformers Dominate Magazines List of the Top 25 Women in Healthcare
5. Consumers More Optimistic than Doctors Regarding Future of U.S. Health Care Reform
6. Doctors and Patients to Hold Congressional Briefing on Healthcare Reform April 16
7. Beyond Reform - Modernizing the Health Care System
8. New Report Details How to Create a Public Health Insurance Option as Part of Nations Health Reforms
9. Bipartisan Coalition Forms to Call for Chronic Disease to be Key Focus of Health Reform in Connecticut and Nationally
10. Mexicos health insurance success offers lessons for US reforms, Lancet study suggests
11. AST President-Elect Joren Madsen Attends Regional White House Forum on Health Care Reform
Post Your Comments:
(Date:6/24/2016)... ... 2016 , ... Those who have experienced traumatic events may suffer from a ... such as drug or alcohol abuse, as a coping mechanism. To avoid this pain ... following a traumatic event. , Trauma sufferers tend to feel a range of emotions, ...
(Date:6/24/2016)... ... June 24, 2016 , ... Marcy was in a crisis. Her son James, eight, was out ... family verbally and physically. , “When something upset him, he couldn’t control his emotions,” remembers ... would throw rocks at my other children and say he was going to kill them. ...
(Date:6/24/2016)... ... 24, 2016 , ... Global law firm Greenberg Traurig, P.A. announced that 20 ... by their peers for this recognition are considered among the top 2 percent of ... honors as members of this year’s Legal Elite Hall of Fame: Miami Shareholders ...
(Date:6/24/2016)... ... June 24, 2016 , ... Comfort Keepers® of San Diego, CA ... the Road To Recovery® program to drive cancer patients to and from their cancer ... ensure the highest quality of life and ongoing independence. Getting to and from ...
(Date:6/24/2016)... ... June 24, 2016 , ... People across the U.S. ... magazine’s Code Talker Award, an essay contest in which patients and their families pay ... be presented at the 2016 National Society of Genetic Counselors (NSGC) Annual Education Conference ...
Breaking Medicine News(10 mins):
(Date:6/23/2016)... , June 23, 2016 Research ... MEMS Devices Medical Market Analysis 2016 - Forecast to 2022" ... The report contains up to date financial data ... analysis. Assessment of major trends with potential impact on the ... analysis of market segmentation which comprises of sub markets, regional ...
(Date:6/23/2016)... INDIANAPOLIS , June 23, 2016 /PRNewswire/ ... Diabetes Tomorrow,s Leaders Scholarship is any indication, the future ... today online at by the Diabetes ... stand in the way of academic and community service ... scholarship program since 2012, and continues to advocate for ...
(Date:6/23/2016)... 23, 2016 Research and Markets ... Volumes: Global Analysis (United States, China, Japan, Brazil, United ... to their offering. ... healthcare business planners, provides surgical procedure volume data in ... with an in-depth analysis of growth drivers and inhibitors, ...
Breaking Medicine Technology: