New Medicaid Study Finds Payment Gap Between Seniors' Actual Care Cost and Provider Reimbursement Most Problematic in NY, IL, OH, TX, NJ, PA, MA, FL, CA, WI

Thursday, December 10, 2009 Health Insurance News
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States With Largest Patient Per Day (PPD) Funding Differential: WI, NJ, MA, NY, WY, IL, MN, MO, NE, RI

WASHINGTON, Dec. 9 /PRNewswire-USNewswire/ -- A new Eljay LLC analysis of the nation's Medicaid financing system projecting states will cumulatively underfund the actual cost of providing quality long term care by nearly $4.7 billion for 2009, and finds seniors in the states of New York, Illinois, Ohio, Texas, New Jersey, Pennsylvania, Massachusetts, Florida, California and Wisconsin will bear the brunt of the underfunding burden at a time when these states and many others are already suffering from rising pressure on state Medicaid budgets.

New York, Illinois, New Jersey, Massachusetts and Wisconsin facilities and the seniors under their care unfortunately fall under both "Top Ten" lists below in terms of highest aggregate Medicaid underfunding and highest per patient per day underfunding.

"Yesterday, we outlined how and why the cumulative $4.7 billion Medicaid under funding is significant to the federal health care reform debate," said Robert Van Dyk, Chair of the American Health Care Association (AHCA). "Today we are focusing needed attention on which states' seniors suffer from the largest state Medicaid funding gaps at a time of deteriorating budget conditions, and worsening fiscal crises in state capitols across America."

"The substantial gap between the cost of providing quality care to seniors and what Medicaid actually pays - combined with the enormous pressure on state budgets caused by the ongoing recession - represents a clear and present danger to America's most vulnerable frail, elderly and disabled citizens," warned Van Dyk. "With our national and state economies in an historic cyclical downturn, this state data serves as a stark reminder of the vital importance to evaluate both Medicare and Medicaid funding as a final federal health care reform bill takes shape. At stake is seniors' ongoing access to quality care, sustaining a strong long term care workforce and local jobs base, and the very ability of our sector to remain strong in the face of challenging demographic realities."

States with largest aggregate States with largest Medicaid per Medicaid underfunding (in patient day underfunding (in millions): millions):1. New York $688.3 1. Wisconsin $28.412. Illinois $359.6 2. New Jersey $25.133. Ohio $306.1 3. Massachusetts $24.954. Texas $271.1 4. New York $24.105. New Jersey $264.2 5. Wyoming $23.066. Pennsylvania $254 6. Illinois $20.807. Massachusetts $251.4 7. Minnesota $20.318. Florida $235.1 8. Missouri $19.159. California $219.6 9. Nebraska $19.0910. Wisconsin $201.4 10. Rhode Island $18.80

SOURCE American Health Care Association

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