La. nursing homes to take 6th-largest Medicare cut, analysis says

An analysis out this morning that digs into the impact of the so-called bad debt provisions passed in the Middle Class Tax Relief and Job Creation Act of 2012 says Louisiana nursing homes will take a $20.3 million Meidcare funding reduction—the sixth largest of all U.S. states. “Like many states, Louisiana’s Medicaid program is fragile,” says Alan G. Rosenbloom, president of the Alliance for Quality Nursing Home Care, which funded the analysis by Avalere Health. “Because Medicare and Medicaid together pay for the care of approximately three of every four Louisiana nursing home patients, it is crucial to recognize how these new federal Medicare cuts upset facilities’ already fragile funding environment.” Regarding health policy, the phrase “bad debt” is a misnomer, Rosenbloom says. “Nursing homes in Louisiana have no legal recourse to collect ‘bad debt’ from the Louisiana Medicaid agency—and is more accurately described as ‘uncollectible debt’ as mandated by federal law,” he says. “We must continue to reinforce this fact with congressional leaders, and respectfully encourage Louisiana lawmakers to keep this in mind as the budget process progresses.” According to the analysis, Florida will absorb the largest Medicare reduction, $60.5 million. See the complete analysis here.