Nursing home payment cuts on the table, Obama administration says

Share this article:
Vice President Joe Biden
Vice President Joe Biden

Obama administration officials say that trimming payments to nursing homes and other providers would substantially reduce future Medicare and Medicaid outlays. But officials are insisting that Republicans accept tax hikes as a condition for such spending cuts.

Administration officials say they are willing to accept Medicaid cuts that could trim federal outlays by $100 billion in the next decade, The New York Times reported. Two weeks ago, before budget negotiations led by Vice President Joe Biden dissolved, Democrats and Republicans were able to agree on cuts they claimed would not radically alter Medicare and Medicaid, according to the paper.

These provisions include the elimination of Medicare “overpayments” to nursing homes; lowering the federal share of some Medicaid spending; and further limiting states' ability to finance Medicaid by imposing taxes on hospitals and other health care providers.

New York Sen. Charles Schumer (D) said congressional Democrats are “very willing to entertain savings in Medicare.” Meanwhile, fellow Democrat, Rep. Henry Waxman (CA), said he is “very concerned” about lowering the federal share of Medicaid, as this would shift costs to states that are already struggling with Medicaid costs, according to reports. Long-term care industry leaders have steadfastly opposed funding cuts to both programs.
Share this article:

More in News

Nursing home antipsychotic use has dipped nearly 19% under national effort, latest figures show

Nursing home antipsychotic use has dipped nearly 19% ...

The percent of long-stay nursing home residents receiving antipsychotic medication has decreased 18.8% under a nationwide initiative that started in 2012, according to the most recent quarterly figures from the ...

Jimmo succeeds in getting Medicare coverage, two years after landmark case ended

Glenda Jimmo has reached a settlement with the federal government and will finally receive Medicare coverage for claims that were denied in 2007, which led her to file a class-action lawsuit over the so-called "improvement standard."

Also in the news for Oct. 31, 2014 . . .

Minnix hopes White House aging conference will spur 'huge shift' ... CMS finalizes home health payment reductions ... Dementia is now No. 1 killer of women in England