With tax revenue up, provider group urges states to reverse Medicaid cuts

A top nursing home group is hoping that a jump in state tax collections can help convince lawmakers to restore states' Medicaid budgets.

State tax collections jumped $62 billion in fiscal 2011, with all 50 states reporting an increase in total tax revenue, according to a U.S. Census report. That's an improvement over collections in 2009 and 2010 when states took in almost  $66 billion and $14 billion less, respectively, according to the American Health Care Association.

To cope with budget shortfalls during the recession, states enacted Medicaid cuts that underfunded skilled nursing facilities by $6.3 billion in 2011, which is equivalent to a loss of $19.55 per Medicaid patient, per day, according to the association. Preserving Medicaid funding is critical to SNFs, as 63% of residents rely on the state-federal program, the association said.

“With the end of assistance from the Recovery Act, an increasing population relying on Medicaid, and states continuing to backfill years of deficits, we understand that challenges still remain,” AHCA President and CEO Mark Parkinson said in a statement.

Click here to read the full U.S. Census Bureau Report.