Please Keep Delivering the Message to Congress to Oppose Nursing Facility Bad Debt

VHCA (12/16/2011)

Earlier this week, the House of Representatives approved H.R. 3630, which extends the payroll tax cut, extends the therapy caps exception process, and provides for the “doc fix.”  While we support these necessary fixes, unfortunately the bill retained the bad debt payment reduction that is damaging to nursing facilities in many states, including Virginia, as a source of funding. 

The House bill reduces reimbursement for bad debt for dual Medicare/Medicaid residents to 55%, resulting in an unwarranted and burdensome tax upon skilled nursing facility providers. Based on 2009 data, the full impact of this cut to Virginia nursing facilities will be around $12 million a year (a 2.5% reduction), when fully implemented in 2015.  The reduction contained in the House bill would be in addition to the 10.7% cut to Virginia SNF Medicare rates implemented on October 1, 2011. 

Key congressional offices are telling government relations staff from the American Health Care Association (AHCA) they do not support reducing bad debt for duals; however, we must send a loud and clear message to Congress that enough is enough.  We encourage all VHCA members to reach out and contact their Members of Congress and ask them to oppose the proposal to reduce bad debt reimbursements for skilled nursing facilities! 

Please see the Key Facts on the Bad Debt Proposal handout that has been circulated on Capitol Hill.  This is a significant and unwarranted cut for nursing facilities that must be prevented.