Proposed Medicare Cuts Will Harm Seniors' Care and Place 419 Arizona Nursing Staff Jobs at Risk

Strategic Insights -

The Arizona Health Care Association warns that seniors in Arizona requiring nursing and rehabilitative care will face funding cuts of over $367 million over ten years due to the pending House health reform bill, combined with a recently-enacted Medicare regulation cutting Medicare-funded nursing home care by $12 billion over the same period. Nationally, the cuts will total $44 billion over ten years. Arizona seniors' care needs are endangered by the House bill, along with the jobs of over 419 caregivers in Arizona. The cuts will have a direct, immediate, negative impact on patients and their care, as labor expenses comprise 70 percent of facility costs.

Key Takeaways:

  • The proposed House health reform bill and the recently-enacted Medicare regulation will cut Medicare-funded nursing home care by $12 billion over ten years.
  • Seniors in Arizona requiring nursing and rehabilitative care will face funding cuts of over $367 million over the same period.
  • Nationally, the cuts will total $44 billion over ten years.
  • The cuts will place the jobs of over 419 caregivers in Arizona at risk.
  • Labor expenses comprise 70 percent of facility costs, making it necessary for providers to cut staff in response to Medicare reimbursement cuts.
  • The Medicaid program already underfunds the cost of providing care by at least $34 million in Arizona.
  • The Arizona Health Care Association urges lawmakers to preserve, protect, and defend seniors' Medicare-funded nursing home care.

Statistics:

  • $12 billion: The amount of Medicare-funded nursing home care being cut over ten years.
  • $367 million: The amount of funding cuts for seniors in Arizona requiring nursing and rehabilitative care over ten years.
  • $44 billion: The national total of Medicare-funded nursing home care cuts over ten years.
  • 419: The number of nursing staff jobs in Arizona at risk due to the proposed cuts.
  • 70%: The percentage of facility costs comprised by labor expenses.
  • $34 million: The amount by which the Medicaid program underfunds the cost of providing care in Arizona.

Sources:

  • American Health Care Association (AHCA)
  • Congressional Budget Office (CBO)
  • Centers for Medicare and Medicaid Services (CMS)
  • Eljay, LLC
  • Arizona Health Care Association (AHCA)