Federal Economic Stimulus Update

VHCA (1/16/2009)

On January 15th, the United States House of Representatives released a summary of the Economic Recovery or stimulus package.  Of interest to long term care providers and specifically to nursing facilities, the proposal includes $87 billion to states of FMAP (federal matching) enhancement and increases through the end of FY 2010 the share of Medicaid costs the federal government reimburses states, with some additional relief tied to the states hit hardest by virtue of their unemployment rates.

To put the $87 billion in perspective, Virginia Medicaid expenditures make up about 1.53% of total US expenditures for Medicaid – meaning a pro-rata allocation, which is not likely, would yield about $1.33 billion for the Commonwealth and would more than make up for cuts now under consideration by Governor Kaine’s Administration and the General Assembly.

The American Health Care Association, along with the Alliance, has created a lobbying document which is being used on the Hill to focus on priorities for long term care providers.  These include:

• Maintenance of effort on FMAP to make sure that the additional Medicaid funds go to the health care programs they were designed to serve and not otherwise diverted; 
• Prompt pay language in Medicaid to ensure that providers are paid within a reasonable period of time, preferably 30 days; 
• Ensuring that long term care is included in health information technology grants; 
• Funds for new construction or building rehab; and 
• Funds for additional staffing.

AHCA and the Alliance will be coordinating their efforts with the press and will work together to obtain coalition support for our issues.

The House and Senate committees are believed to be marking up the package next week.  It is unclear when the legislation will be scheduled for a floor vote in either body, though it is not likely to happen until the first week of February.