Dear Editor,
The proposed state budget includes a devastating 8.8
percent cut in Medicaid funding to Illinois nursing homes,
totaling $171 million. If this budget is passed, many
nursing facilities in Illinois will go bankrupt,
threatening the status of more than 50,000 nursing home
residents on Medicaid -- almost two-thirds of the state's
nursing home population.
This proposed Medicaid reduction comes at a time when
Illinois already lags behind the national standard for
Medicaid funding for nursing homes. Currently, the average
Medicaid rate paid to Illinois nursing homes ranks 44th
in the nation. Average costs at Illinois nursing homes
have increased 61 percent over the past eight years, while
Medicaid rates paid to these facilities have increased
only 37 percent.
In addition, the proposed Medicaid cut puts Illinois at
risk for losing federal matching funds. If the $171
million cut is passed, the state will lose 50 cents in
federal funds for every dollar that in-state nursing home
payments are reduced. The result? Additional losses of
$85.5 million.
We need to avoid this terrible blow to Medicaid. With
the proposed recession budget, the Illinois Council on
Long Term Care recommends that the best solution is to
temporarily increase the provider license assessment. By
raising money through a provider license assessment, all
monies raised will be matched by the federal government --
every dollar will bring in 50 cents of federal matching
funds for Illinois nursing home residents.
Increasing the provider license assessment costs the
state nothing and also prevents the loss of needed
Medicaid matching funds. With the state in a financial
crunch, it's important to capture every dollar of federal
funding available and a provider license assessment brings
more federal funds to Illinois. Increasing the provider
license assessment is the most practical solution to
maintaining the safety net of long term care facilities
for some of our state's most frail and elderly citizens.
Terrence Sullivan
Executive Director
Illinois Council on Long Term Care
