“Growth in Medicare Advantage Spending Far Outpaces Traditional Medicare,” by Alex Spanko, Skilled Nursing News

“The growth in overall spending on nursing homes in the United States slowed for the second consecutive year in 2017, according to the latest analysis from the Centers for Medicare & Medicaid Services (CMS) — while Medicare Advantage spending skyrocketed. All payers spent $166.3 billion at nursing care facilities and continuing care retirement communities (CCRCs) last year, up from $163.0 billion in 2016. That works out to spending growth of 2.0%, down from last year’s gain of 3.1%. … The rise of Medicare Advantage has taken a toll on skilled nursing facilities, which receive significantly lower reimbursements under the public-private plans than through traditional Medicare. In the second quarter of 2018, SNFs received an average fee-for-service Medicare reimbursement of $521 per day per patient, according to the most recent set of statistics compiled by the National Investment Center for Seniors Housing & Care (NIC), compared to $427 from Medicare Advantage.”

LTC Comment (from Stephen A. Moses, President, Center for Long-Term Care Reform):

The impact of managed care via Medicare Advantage plans on the skilled nursing business is just beginning to be felt and will rapidly become a major issue of concern.