“Skilled nursing care centers rely heavily on Medicaid to pay for the services they provide to most of their patients – approximately 65 percent to 70 percent of nursing center residents are covered by Medicaid. ‘Currently, the rates paid by states for Medicaid-covered services do not adequately reimburse the actual costs incurred by providers, resulting in a major disconnect between payment levels and the needs of the patients,’ says Narda Ipakchi, director of managed markets for the American Health Care Association/National Center for Assisted Living (AHCA/NCAL). ‘Already in Medicaid fee-for-service, provider rates are inadequate. Under managed care, plans often seek to further reduce reimbursement rates to providers in order to contain costs.'”
LTC Comment (from Stephen A. Moses, President, Center for Long-Term Care Reform):
As Medicaid moves to more and more managed care for LTC patients, more costs will be shifted to private payers including those with LTC insurance.