President's budget proposal cuts Medicaid payments to providers by $28.8 billion over 10 years

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SNFs could see 50% payment reduction for Pre-Existing Condition Insurance Plan claims
SNFs could see 50% payment reduction for Pre-Existing Condition Insurance Plan claims

President Obama released his $3.7 trillion budget for FY 2012 Monday, and it would lower Medicaid payments to healthcare providers by $28.8 billion over 10 years.

The reduction is intended to postpone for two years the scheduled 25% cut to the Medicare physician payment formula known as the “doc fix” that's set to expire at the end of 2011. The Obama budget also would squeeze Medicare and Medicaid payments to hospitals and doctors, and expand the use of generic drugs in federal health programs, according to The Hill.

“Simply put, cutting Medicaid provider assessments is the wrong move,” said Gov. Mark Parkinson, president and CEO of the American Health Care Association and National Center for Assisted Living. “As states across the country face unprecedented fiscal crises, we struggle with the recommended loss of $18.4 billion in critical Medicaid funding over the next decade. Provider assessments are vital tools that allow states to voluntarily leverage funding to care for the economically disadvantaged and medically frail.”

Long-term care provider issues will be discussed in-depth during a free McKnight's Online Expo webcast at 11 a.m. (Eastern Time) on March 23. Many providers are “leaving dollars on the table,” according to various payment experts. Free registration for the session is ongoing at www.mcknights.com/expo2011.