“MedPAC Commissioner: Underfunding Turns Medicaid-Heavy SNFs into ‘7th Circle of Hell’,” by Maggie Flynn, Skilled Nursing News

 

Quote:

“The Medicare Payment Advisory Commission (MedPAC) once again advised that Medicare’s payments for skilled nursing facilities are too high — but also acknowledged the challenges for providers caused by low Medicaid reimbursement. A presentation by Dr. Carol Carter delivered to MedPAC on December 5 examined Medicare margins for SNFs amid the larger contexts of beneficiary access to care, quality-of-care indicators, access to capital markets, and changes in Medicare costs and payments. While Medicare margins for SNFs remain high, with an aggregate margin of 10.3%, the total margin for SNFs was very different: -0.3%.”

 

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

Rare acknowledgement by MedPAC of the critical role Medicare subsidization plays in enabling LTC providers to give below-cost care to 2/3 of their residents. This is critical because in only six years Medicare may have to cut back when its trust fund runs dry. Who will subsidize Medicaid then? Taxpayers or loans from overseas.