According to the Pennsylvania Health Care Association, state nursing homes will see a $200 million cut in annual Medicare payments under a new rule announced by the Centers for Medicare and Medicaid Services. The new rule means an 11 percent cut in basic Medicare rates beginning Oct. 1 according to phca.org.
PHCA said two-thirds of nursing home residents are on Medicaid and because nursing homes lose money caring for residents on Medicaid, they depend on private insurance and Medicare to make up the difference.
“We recognize that there are limited state dollars in Pennsylvania, and appreciate that Governor Corbett and state legislators made the care of the frail and elderly in nursing homes a priority while negotiating the recent state budget,” Dr. Stuart H. Shapiro, MD, President and CEO of the PA Health Care Association, said in a news release.
“These draconian cuts in Medicare now threaten this care and the jobs of those who care for the frail and elderly in Pennsylvania. Any future cuts in Medicaid or Medicare may collapse an already fragile system of care – with unthinkable and tragic results.”