No Time for Spectators by VHCA (2/26/2010)

eMemo

February 26, 2010

No Time for Spectators

VHCA (2/26/2010)

Medicaid and Auxiliary Grant funding for long term care services is in serious jeopardy as Budget Conferees begin to negotiate a final 2010-2012 State Budget within the next few days. It is critical that all VHCA/VCAL members call, email or fax each of the Conferees with a request to adopt the Senate position with respect to additional provider payment cuts in state fiscal year 2011.

As discussed with VHCA and VCAL members that attended this week’s Legislative Conference, the Budget Amendments announced last Sunday by the House of Delegates impose additional deep cuts on Virginia’s long term care facilities. Combined with cuts included in the Introduced Budget, the House amendments would create Medicaid cuts in state fiscal year 2011 totaling $56.4 million or about $5.07 on average below current rates per Medicaid patient day. For Auxiliary Grant providers, the House amendments reduce by $100 the monthly payment to assisted living facilities.

The Senate Budget amendments do not place additional cuts on nursing facilities in SFY 2011 and in addition stipulate that anticipated additional FMAP relief funds be used to support the Medicaid program as was intended by Congress.

The House Budget proposal will:

Place a value on the care provided to the Commonwealth's sickest and most frail of the grand sum of $5.92 per hour for round the clock care based upon a projected $141.97 average daily payment rate.
Cut long term care Medicaid payments by an additional $31.2 million in SFY 2011 - over and above the $72.1 million in cuts to payment in 2009, 2010 and included in the Introduced Budget.
Result in the loss of an additional 730 private sector jobs and $31.1 million in taxable wages in Virginia nursing facilities.
Punish nursing facilities as the most cost effective Medicaid provider. The average annual percentage growth in Medicaid nursing facility expenditures between 2005 and 2012 is projected to be only 3.6%. The overall growth for Medicaid during this period is projected to be 7.9%.

The Commonwealth of Virginia may be forced to cut Medicaid provider rates, but additional FMAP relief funds should ONLY be used to support the Medicaid program and NOT for other budget items.

The most effective messages are those that are in your own words describing the impact of Medicaid cuts on your facility's ability to deliver high-quality long term care services to Virginia's most vulnerable citizens. Additional informational resources are available for your use in communicating with each of the Conferees.

To email the Conferees, please click on their names below.

The House Conferees likely will be: