AHCA/NCAL 2011 Congressional Briefing July 13 & 14, 2011
Based on incomplete data, CMS proposed an immediate Medicare cut of 11.3% to SNFs in its annual
rule, which would cause significant instability to the system.
AHCA suggests that CMS implement a 3% reduction, withhold the market basket update now, and
reevaluate the data over the next year.
If budget neutrality is not met, CMS could make another reduction up to 3% and withhold the market
basket update until budget neutrality is met.
We would be committed to prospectively returning any money above the baseline during this
I urge you to carry this more balanced approach to your leadership.
As 64% of our residents rely on Medicaid, debt ceiling talks cannot include Medicaid block grants or
the elimination of provider taxes.
Reducing funds will put state programs in financial jeopardy.
I ask you to protect nursing home care as an entitlement for our greatest generation.
Recent proposed rules regarding home-and-community-based settings issued by CMS have the
potential to disqualify many assisted living facilities and group homes from Medicaid.
Senators – please sign on to a Dear Colleague Letter regarding these rules.
House Members – please send an individual letter to CMS expressing your concern.
The LTC profession is the 10th largest employer in the nation, contributing 5.4 million
jobs, supporting $529 billion in economic activity, and generating $60.9 billion in taxes.
1.7 million individuals rely on Medicare for nursing facility care each year. Medicaid
covers nursing facility services for 1.6 million individuals.
70% of skilled nursing facility costs are labor related.
When combined with the Medicaid cuts already happening in many states, the SNF
proposed rule in its current form puts more than 100,000 jobs in jeopardy.
Data suggest that nursing facilities represent the lowest-cost institutional setting for
skilled nursing and rehabilitative care.
Long term care directly contributes 3.1 million jobs.
Medicaid and private pay patients have long lengths of stay – nearly 11 months on
In 2010, Medicaid underfunded nursing facility care nationally by $5.6 billion, an
average of $17 per patient, per day.
Medicare patients have short rehabilitative stays – 27.3 days on average.
In these tough economic times, it is important to remember that long term care directly
contributes 1.3% of the GDP, and supports an additional 2.4% of the GDP.
There are nearly 1 million residents in assisted living communities, 13% of whom rely