White House proposes 'accelerated' skilled nursing facility payment cuts

President Obama’s $3.7 trillion budget plan for the next year makes concessions to a new political reality: Republicans control the House of Representatives.

It’s no coincidence his spending proposal seeks to trim the deficit by $1 trillion over the next decade. Toward this goal, the measure raises taxes on upper income earners and closes several current loopholes. Most notably, his plan would cut $18.4 billion in federal Medicaid funding by lowering the amount that states could tax providers. As a result, matching federal funds would also be reduced. That means fewer dollars for states and long-term care providers, critics noted.

Revenues flowing into state coffers have already dropped by nearly 12% in the past two years, according to the National Association of State Budget Officers. By one estimate, states are confronting budget deficits of nearly $27 billion, this fiscal year alone.