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

Antipsychotics reduction goal is 25% by end of 2015, CMS and provider groups announce

Antipsychotics reduction goal is 25% by end of ...

Long-term care providers are being asked to reduce the use of antipsychotic medications among residents by 25% by the end of 2015, and 30% by the end of 2016. Providers ...

CDC issues new guidelines on pneumococcal vaccine, says LTC flu vaccination rates remain low

CDC issues new guidelines on pneumococcal vaccine, says ...

Long-term care workers continued to have low rates of flu vaccination last season, despite there being 92% vaccination coverage overall among physicians and nurses, the Centers for Disease Control and ...

AL operators accused of withholding $2M in unpaid overtime, minimum wages ...

Four California assisted living operators are facing eight felony charges related to wage theft, tax and insurance violations, according to local reports.