Will budget cuts mean trouble for Virginia nursing home residents?

Posted on Dec 19, 2009

Virginia Governor Tim Kaine has released his proposed two-year state budget which includes a $419 million reduction to Medicaid. The reduction includes $19.8 million worth of cuts to nursing home facilities.

According to the Virginia Health Care Association (VHCA), 63 percent of individuals in nursing homes are on Medicaid. This means that any changes or cuts to Medicaid affect people who are unable to do much about it.

Virginia is already ranks low when compared to other states when it comes to Medicaid reimbursement. One health system provider claims that they only receive 70 cents on the dollar for hospital care.

Facility residents who depend on Medicaid aren’t the only ones who may be affected. Those residents paying for care out of their own pocket may see rates rise to make up for the Medicaid shortfall, which means they might run out of savings sooner. As soon as they exhaust their savings, they’ll be eligible for Medicaid themselves – creating a vicious cycle.

According to the VHCA, 70 percent of the costs in long-term care facilities are for staffing. If cuts are made to Medicaid, it is likely that some facilities will attempt to trim staff to save money. The problem is that residents in understaffed facilities are more likely to experience neglect and abuse.

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