Bill's bad-debt proviso has leaders seeing red
Mark Parkinson, President, AHCA
Introduced in mid-December, the bill asks skilled nursing operators to absorb more than $4.5 billion of $10 billion in bad debt losses.
“The full impact of this cut will be around $500 million a year,” said American Health Care Association President and CEO Mark Parkinson in a statement to McKnight's.
The controversial measure also would provide temporary solutions to the “doc fix” and therapy cap exceptions process — both moves that long-term care providers cheer.
But Medicare reimbursable bad debt would be cut almost in half by 2015 (from 100% now, to 55%). Private payers also would be gradually phased down to 55% by 2015 (from the current 70%).
Seventeen states would pay for nearly 90% of the bad debt reductions, according to AHCA. Provider advocates were targeting lawmakers in the most affected states.