Recently, Genworth Financial released it's 2011 Cost of Care Survey, which showed that the costs for skilled Nursing Home care are rising faster than the costs for assisted living facilities or home health care. Why is that?
One reason may be the fact that Medicaid reimbursement rates may not be covering the cost of care, according to a study by the American Health Care Association, a national organization of skilled nursing facilities. Since Medicaid is funded in large part by states, the funding gap can vary. This report shows the differences in state funding.
www.ahcancal.org/research_data/funding/Documents/2010 Medicaid Shortfall Report.pdf.
In order to survive, the nursing facilities may have to increase the costs to private pay patients. Of course, if the funding difficulties persist the private pay patients will balk at subsidizing Medicaid patients for comparable care and will probably migrate towards other care options - which could put more pressure on a facility left with more public pay residents.
What do you think? How can the Medicaid funding shortfall be addressed?
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