White House spending plan less than industry hoped for

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Lawmakers praise long-term care 'credibility,' Paul Ryan says consumers and providers both struggle
Lawmakers praise long-term care 'credibility,' Paul Ryan says consumers and providers both struggle

In every White House budget, there are winners and losers. Unfortunately for providers, long-term care again falls into the latter category. All told, President Obama's $3.9 trillion spending plan for fiscal year 2015 would cut funding for healthcare by $402 billion over the next decade.

This includes an “accelerated schedule” for reducing skilled nursing facility Medicare market basket updates. 

The spending plan also calls for equalizing payments to skilled nursing facilities and inpatient rehabilitation facilities for certain services, and adjusting SNF payments to reduce hospital readmissions.

The American Health Care Association/National Center for Assisted Living slammed the proposed Medicare reductions, noting that the sector has “endured billions in cuts” in recent years. However, the association supports proposals that could achieve savings without slashing reimbursements, such as penalizing SNFs that have high hospital readmissions rates.

“We have a proposal on Capitol Hill that would do just that, saving Medicare nearly $2 billion while improving health outcomes,” said AHCA/NCAL President and CEO Mark Parkinson.  LeadingAge also said cuts are not the answer.

Rep. Paul Ryan (R-WI) said the budget is a “campaign brochure” that panders to Obama's Democratic base.


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