LTC providers oppose bad debt provision in Senate budget proposal

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Providers are objecting to a Senate budget proposal that affects skilled nursing facilities.

Specifically, three long-term care provider advocacy organizations last week asked members of Congress to remove a provision from the budget reconciliation package that cuts Medicare  reimbursements for skilled nursing facility bad debt by 30%. The organizations are: the American Health Care Association, the Alliance for Quality Nursing Home Care and the American Association of Homes and Services for the Aged.
 
SNFs cannot collect the majority of bad debt because the majority of SNF bad debt results from "a quirk" in Medicaid law, they write. The quirk allows states and local governments to pay only a portion of the full co-insurance for the dual eligibles for whom they are responsible.

The Senate is considering a package that would reduce Medicare's
reimbursement of skilled nursing facility bad debt from 100% to 70% of allowable costs. It is expected to vote on its final budget package by the end of this week.
(Published 11-2-05)

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