Medicaid Falls Short for Nursing Homes

First, what is Medicaid?..........are approaching a $14-per-patient per-day loss when
Well, Medicaid is a Federal medical bills assistancecaring for Medicaid patients. And she said that the
program that pays medical bills for eligible, needycare of about 75 percent of the patients in North
persons. It is administered by each state. AllCarolina nursing homes is paid for by Medicaid.
payments are made directly to the providers of"We are completely at the mercy of Medicaid for our
medical and other health care services. Thestability," she said. Flannery said that for the current
Medicaid-eligible person does not pay the health carerate year, which ends Sept. 30, nursing homes in
provider for services. The only exception is a patientNorth Carolina are projected to incur a $117-million
in a Medicaid-approved nursing facility who may beloss for Medicaid patients..
required to contribute part of his/her income toward"You can only bleed your private-pay patients so
the cost of care.much," Flannery said.
Medicaid is welfare for the poor, the true and honestIf changes aren't made, wage-earners in future
poor. Medicaid is NOT for people of means trying todecades could be paying larger sums of their earnings
fake impoverishment in order to get on the dole.just to help pay for the upkeep of the elderly and
That door has been slammed shut.other health benefits, he said.
Reflecting a national problem, leaders of NorthAt the current pace, 40 percent of all wages would
Carolina's nursing home and long-term care facilitiesbe needed to pay for Social Security, Medicare,
say that the money which Medicaid provides forMedicaid and Veterans Administration benefits by
patient care simply isn't enough to cover costs.2050, Moses said.
North Carolina's problems reflect a grrowing national"The trends can't continue and won't," he added.
concern. It's a trend that likely could send theFlannery would like to see a tax credit reinstated that
industry spiralling into a financial crash, said the headwould give individuals a break if they purchase their
of a reform group.own long term care insurance, and we agree.
As the public funding infrastructure implodes over theIn any case, long term care insurance is wise for all
next decade or two, we're going to hurt a lot ofto consider, as you cannot count on the citizenry and
poor people who won't have any access to a decentits elected officials to loosen their purse strings at this
safety net.late date. It won't happen any time soon, believe me.
Stacy Flannery, with the N.C. Health Care FacilitiesThat's fantasy-based wishful thinking. Period.
Association, said that nursing homes in North Carolina