Congressional inaction could cost states—and LTC—billions

Nursing Homes, August, 2004 by Douglas J. Edwards

As of press time, states stand to lose $8.9 billion in FY 2005 because federal law-makers allowed the temporary 2.95% federal medical assistance percentage (FMAP) increase to expire last month. This could result in a loss of as much as $1.39 billion in nursing home funds, reported the American Health Care Association and National Center for Assisted Living (AHCA/NCAL). The ten hardest hit states, said AHCA/NCAL, are:

 1. New York (estimated total Medicaid spending lost $1.47 billion)
 2. California ($983.3 million)
 3. Texas ($499 million)
 4. Pennsylvania ($453.7 million)
 5. Florida ($383.5 million)
 6. Ohio ($366.4 million)
 7. Illinois ($314.7 million)
 8. Massachusetts ($279.8 million)
 9. Michigan ($258 million)
10. New Jersey ($241.8 million)

After the funding lapsed on June 30, Sen. Jay Rockefeller (D-W.Va.) and Sen. Gordon Smith (R-Ore.) introduced legislation extending FMAP relief an additional 15 months.

"The federal fiscal relief has served to protect American seniors, and we urge lawmakers to extend the FMAP assistance until sustained, longer-term economic gains can stabilize state budgets," said then AHCA/NCAL President and CEO Charles H. Roadman II, MD, CNA. "Extending assistance for just one more year is an effective way for Congress to help states avoid making more cuts or program limits that negatively impact the well-being of America's most vulnerable population of seniors."

BY DOUGLAS J. EDWARDS, ASSISTANT EDITOR