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WASHINGTON, June 5 /PRNewswire-USNewswire/ -- As Congress returned to Washington this week following its Memorial Day district work period, the Maine Health Care Association (MHCA) released a new analysis finding the Bush Administration's proposed $770 million Medicare Part A national nursing home funding cuts will not only cost Maine seniors $3.9 million in essential health benefits, but cause the state to lose $8.5 million in total economic activity and $4.1 million in lost wages. MHCA officials are in Washington this week lobbying the Maine congressional delegation on long term care financing and other related issues.
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According to the new study, prepared by the American Health Care Association (AHCA), the following schedule illustrates the direct, indirect and induced impact of the Administration's pending $3.9 million Medicare cut on Maine, scheduled to go into effect this summer:
Direct Effect represents the impact (e.g. change in employment or revenues) for the expenditures and/or production values specified as direct final demand changes.
Indirect Effect represents the impact (e.g. change in employment) caused by the iteration of industries purchasing from industries resulting from direct final demand changes.
Induced Effect represents the impacts on all local industries caused by the expenditures of new household income generated by the direct and indirect effects of final demand changes.
Total Impact is the sum of the direct, indirect and induced effects.
Labor Income is the sum of employee compensation and proprietary income.
Economic Impact Analysis: Impact Analysis for Planning (IMPLAN) software, Minnesota IMPLAN Group, Inc., 2006 data.
Copyright, American Health care Association, 2008
"The Bush Administration's proposed Medicare cuts not only threaten Maine seniors' access to quality care throughout our state, but will also negatively impact our state and local economy," stated Rick Erb, President and CEO of MHCA. "The Medicare cuts represent a 'lose-lose' proposition because Maine seniors' care needs will be shortchanged and our state economy will be damaged at a time we can least afford it."
The Maine long term care leader said the Medicare regulations being changed by the Bush Administration are currently helping facilities throughout the state successfully serve higher acuity patients -- at a lower cost than other settings. "Considering the fact existing Medicare policy is beneficial to both patients and the taxpayers who finance the program, it is especially curious this regulatory policy change is being pursued by the President's health care team," Erb stated. Current policy, he added, saved Medicare $709 million in 2006 alone nationally, according to an independent analysis by Avalere Health, LLC.
"It is our intent to ensure during our visits on Capitol Hill that the Maine congressional delegation is well informed about the significant damage the Administration's Medicare changes will incur both to Maine's long-term care residents, and to our state and local economies," Erb continued.
Susan Feeney, Vice-President of Public Affairs for AHCA, said rural communities in states like Maine have higher than average numbers of elderly citizens, and noted that beyond serving the growing complex care needs of elderly seniors, rural facilities are a major local employer, and a significant part of the local economy. "Front line caregivers throughout Maine, and across America, make a key difference in patient care - and the Bush Administration's plan now set to go forward presents
