| FOR IMMEDIATE RELEASE April 21, 2009 |
CONTACT: Kristen Knapp, APR (850) 224-3907 or kknapp@fhca.org |
National Report Points to Florida's Plan to Divert Medicaid Stimulus Dollars Tallahassee, FL - A new draft report was recently released from the U.S. House Oversight and Government Reform Committee minority pointing out that stimulus resource diversion could force state Medicaid programs into decreasing reimbursements to healthcare providers. The study, "De-Targeting the Stimulus: States Diverting Medicaid Funds Away from Helping Poor, Protecting Health Care Jobs," cites eight states - New York, Michigan, Virginia, West Virginia, Kansas, Indiana, Florida and Nevada - that are likely to use Medicaid stimulus funding to fill budget gaps. "This practice undermines the promise that stimulus funds would be 'targeted,'" the report states. "By exploiting a loophole in the stimulus legislation, states are effectively able to use federal funds intended for healthcare spending for whatever projects they choose and without obligation to adhere to federal transparency and accountability rules attached to stimulus funds." Citing this report, which was spearheaded by Rep. Darrell Issa (R-CA), the Florida Health Care Association (FHCA) joined its national affiliate, the American Health Care Association (AHCA), in stating that broader federal oversight is indeed necessary to ensure funds are used in a more transparent, accountable manner. FHCA and AHCA concurred with the concern of Rep. Issa that some states, including Florida, are diverting Medicaid funds from the economic stimulus package to projects unrelated to caring for seniors and protecting the viability of providers during the current economic downturn. Currently, Florida nursing home care is facing a 3 percent ($81 million) cut proposed by the Florida Senate and a 2.5 percent cut ($69 million) proposed by the House, while at the same time legislators are taking $783 million of federal stimulus dollars designated for health care and redirecting them into other areas. "Congressman Issa has raised a monumentally important issue of concern to the provider community and seniors under our care, and ensuring there is maximum accountability in regard to how Medicaid resources contained in the stimulus bill are actually spent once they reach state capitols is critical," stated Bruce Yarwood, President and CEO of AHCA. "The long term care profession is one-hundred percent behind Congressman Issa's effort to ensure seniors can retain access to the quality care they need and deserve - as Congress intended as part of the economic stimulus bill." "This funding gap is only getting worse - and the Medicaid funds in the federal stimulus bill should rightly be directed towards helping our state close the gap between the cost of providing quality care and the actual payments received by providers," said Emmett Reed, FHCA Executive Director. FHCA and its national affiliate, AHCA, argue that with more stringent state spending safeguards to help ensure these new federal funds are actually directed towards seniors' care, the increase in federal Medicaid funds will go a long way towards protecting the nation's most vulnerable, neediest elderly citizens. "Ensuring these funds are directed towards seniors and the providers who care for them will also protect and help create the key facility staff jobs that make an enormous difference in patient outcomes," said Reed. Making sure federal Medicaid relief aid goes to the intended purpose of protecting state seniors is important for another key reason: According to an independent 2008 study of our nation's Medicaid program by Eljay LLC, there already exists a $4.2 billion negative differential between what the Medicaid program funds for seniors' growing Medicaid needs versus the actual costs incurred by providers. In Florida, Medicaid underfunded the actual cost of providing quality long term care in 2008 by $188.5 million annually, ranking the state 10th in terms of cumulative underfunding of nursing facility care. To view a complete copy of the report, visit http://republicans.oversight.house.gov/media/pdfs/20090415MedicaidReport.pdf. ABOUT THE FLORIDA HEALTH CARE ASSOCIATION The Florida Health Care Association (FHCA) is a federation which serves nearly 1,000 members and represents over 500 long term care facilities that provide skilled nursing care, short-term rehab, assisted living and other services to the frail elderly and individuals with disabilities in Florida. FHCA was founded on the premise that its members have a moral obligation to the residents they serve, and since 1954 the Association has worked diligently to improve quality of care and quality of life for the state's growing elder care population. For more information about the Florida Health Care Association, visit www.fhca.org. ### | |