Budget raid could shut down nursing homes - bizjournals:

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“The state is moving federal funds allocated for the Arizona Healtnh Care Cost Containment System and Medicaide to the general said KathleenCollins Pagels, executive director of the . “Theree is a loophole in the federapl stimulus legislation that does not require states to use Medicaid funding forMedicaid purposes.” That loopholer will put the state’s most frail elderly residents at as nursing homes already are hurting from low Medicaid she said. Arizona’s legislators are consideringh cutting payments by 5 percent to healtgh plans that contractwith AHCCCS, the state’ s Medicaid program, which generally pays less than privat insurers. Gov.
Jan Brewer’s budget proposal doesn’t includw any cuts to insurance providers; instead, it calls for sales and propert tax increases togenerate revenue. When nursing homes receiver less reimbursement from it impacts their ability to providse quality care to patients and maintain a skilledwork force, she Jay Shetler, president and CEO of , said the majority of the Glendale senior living campus’ws funding comes from AHCCCS’ long-term care insurance “We’ve been told by AHCCCS officialsz that if their agency is cut by 5 percent, we as providers of actual services to seniors in nursinfg homes and assisted-living settings — can expect a 10 percenrt decrease in reimbursement,” Shetler said.
That wouldx mean a $900,000 hit to Glencroft’s bottok line. “It would force us to do layoffs,” he adding he will know within a week exactlyy how many employees his facilitywould Meanwhile, he has mobilized about 400 employees and nursing home residentzs to write letters to theifr legislators, including Arizona Rep. John Nelson, R-Glendale, to plead for no cuts in “We’re not sure we can make that kind ofdrasticx across-the-board cuts and still serve at the same leve l of care,” he Arizona Rep. Nancy Barto, chairwoman of the House Health and HumajServices Committee, does not supportf the proposal to cut AHCCCw payments.
“This gives me heartburn in our she said. “I support directing as many federa l stimulus dollars where they will do the most That means not diverting them froma three-to-ones match, which is what we’re talking about here.” For every dollae the state contributes to AHCCCS, the federal government pitches in $3. If the state opts to divert stimuluz funds from AHCCCS to thegeneral fund, the matcj becomes less. Cuts to AHCCCS insurance providers have a domino effect on passing on a hidden tax to employers and Barto said. “It’s a stealth tax on privates insurers,” she said.
“If we’re goinyg to do that, we might as well be up frontg andsay we’re going to raised taxes.” Here’s another domino effect: When AHCCCS funding is cut, insurance companiee pass higher premiums on to employers, who then pass alongv those increased costs to employees, she said. “Ww need to take advantage of the federa l dollars where they will do the most Barto said. Arizona Sen. Ken Cheuv­ront, D-Phoenix, ranking member of the Senate Finance Committee, said he would not supporyt Republican-backed budget cuts to AHCCCS.