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Medicaid Falls Short for Nursing Homes

First,  what  is  Medicaid?..........Medicaid patients. And she said that the care
of about 75 percent of the patients in North
Well, Medicaid is a Federal medical billsCarolina nursing homes is paid for by
assistance program that pays medical billsMedicaid.
for eligible, needy persons. It is
administered by each state. All payments are"We are completely at the mercy of Medicaid
made directly to the providers of medical andfor our stability," she said. Flannery said
other health care services. Thethat for the current rate year, which ends
Medicaid-eligible person does not pay theSept. 30, nursing homes in North Carolina are
health care provider for services. The onlyprojected to incur a $117-million loss for
exception is a patient in a Medicaid-approvedMedicaid  patients..
nursing facility who may be required to
contribute part of his/her income toward the"You can only bleed your private-pay patients
cost  of  care.so  much,"  Flannery  said.
Medicaid is welfare for the poor, the trueIf changes aren't made, wage-earners in
and honest poor. Medicaid is NOT for peoplefuture decades could be paying larger sums of
of means trying to fake impoverishment intheir earnings just to help pay for the
order to get on the dole. That door has beenupkeep of the elderly and other health
slammed  shut.benefits,  he  said.
Reflecting a national problem, leaders ofAt the current pace, 40 percent of all wages
North Carolina's nursing home and long-termwould be needed to pay for Social Security,
care facilities say that the money whichMedicare, Medicaid and Veterans
Medicaid provides for patient care simplyAdministration  benefits by 2050, Moses said.
isn't  enough  to  cover  costs.
"The trends can't continue and won't," he
North Carolina's problems reflect a grrowingadded.
national concern. It's a trend that likely
could send the industry spiralling into aFlannery would like to see a tax credit
financial crash, said the head of a reformreinstated that would give individuals a
group.break if they purchase their own long term
care  insurance,  and  we  agree.
As the public funding infrastructure implodes
over the next decade or two, we're going toIn any case, long term care insurance is wise
hurt a lot of poor people who won't have anyfor all to consider, as you cannot count on
access  to  a  decent  safety  net.the citizenry and its elected officials to
loosen their purse strings at this late date.
Stacy Flannery, with the N.C. Health CareIt won't happen any time soon, believe me.
Facilities Association, said that nursingThat's fantasy-based wishful thinking.
homes in North Carolina are approaching aPeriod.
$14-per-patient per-day loss when caring for



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