Texas nursing home operators fear Medicaid cuts three times deeper than expected

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The Texas House of Representatives' budget proposal for fiscal 2012-2013 includes cuts to Medicare providers of 34%, which is three times higher than nursing home advocates expected.

Nursing home operators, who say nursing facilities are already losing money at Medicaid's current reimbursement rate, worry that a cut like this would put non-profit nursing homes out of business, the San Antonio Express-News reported. Medicaid provider rates were cut by 1% in September and an additional 2% cut will go into effect in February.

Advocates with the Texas Association of Homes and Services for the Aging contend that current Medicaid reimbursement rate for nursing homes is less than $125 per day. The proposed cut would lower it to $80.