Tuesday, January 14, 2014

Report: Medicaid Underfunding over $7.7 Billion

Amy Mendoza

AHCA released its annual Medicaid Shortfalls report this week, titled A Report on Shortfalls in Medicaid Funding for Nursing Center Care. The report estimates the nation's highest Medicaid shortfall on record - over $7.7 billion in 2013. For a typical 100-bed facility in which 63 percent of residents rely on Medicaid for coverage, this shortfall would mean a loss of more than $550,000 annually.

Other highlights include:
  • The estimated average Medicaid shortfall for 2013 of $24.26 per Medicaid patient day is 8.6 percent higher than the preceding year’s projected shortfall of $22.34.
  • On average, Medicaid reimbursed nursing center providers only 88.3 percent of their projected allowable costs incurred on behalf of Medicaid patients. This means that for every dollar of allowable cost incurred for a Medicaid patient in 2013, Medicaid programs reimbursed, on average, approximately 88 cents.
  • Between the time periods covered by the cost reports used in the study and 2013, this study projects costs will increase an average of 3.8 percent, while rates increased an average of 2.9 percent.
Be sure to also check out the report for a comprehensive review of the factors affecting the future of nursing care funding, including managed care, state budget trends, home and community-based expansion, and more.

Participating states' shortfall information is included on AHCA website. Read Provider magazine’s take here.

How do you use the Shortfalls information? Send your story to Amy Mendoza.

No comments:

Post a Comment