Nursing homes sound alarm on Wolf budget - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Newswires
Newswires RSS Get our newsletter
Order Prints
February 21, 2018 Newswires
Share
Share
Post
Email

Nursing homes sound alarm on Wolf budget

Central Penn Business Journal (PA)

At issue is the reimbursement paid to long-term care facilities for the cost of caring for residents enrolled in Medicaid.

According to the Pennsylvania Health Care Association, the state's Medicaid program pays facilities $197.9per patient per day. But the rate hasn't changed in the last four fiscal years, even as the daily costs for each patient are expected to soar above $250 in 201.

Representatives for long-term facilities say the failure to raise the reimbursement rate in the most recent budget puts nursing homes in an untenable situation.

The president of the Pennsylvania Health Care Association, Russell McDaid,said the state "should be reinforcing its commitment to this vulnerable population and those providing their care by adequately funding nursing facility and post-acute care."

"Nursing facilities cannot sustain flat funding for a fourth straight year, and increased support for our sickest, frailest elderly residents and those providing their care in this budget is essential," said McDaid.

McDaid cited the continued growth of funds for other programs as an example he hopes the state will follow when it comes to nursing facilities.

"Education, for instance, has seen year-over-year increases in funding since the governor took office," said McDaid.

The Pennsylvania Department of Human Services, which administers the state Medicaid program, did not respond to requests for comment.

On average, nursing homes in the commonwealthlose $27.25 per day for each Medicaid recipient they treat, amounting to $9,900 annually for each patient or nearly $1 million annually for a facility with 0 Medicaid recipients.

That shortfall widens as patients and residents grow in numbers and bring with them more intensive care needs. According to the PHCA, as medical advancements increase life expectancy, Americans over 5 are the fastest growing age group in the state.

These changes mean the funding shortfall applies even more pressure to the industry, said Steve Proctor, CEO of Presbyterian Senior Living in Carroll Township. Presbyterian Senior Living operates over 30 locations in Pennsylvania, Maryland, Delaware and Ohio.

"You dont have to be a financial wizard to figure out that, over time, its an unsustainable pressure," said Proctor.

According to Ron Barth, CEO of nonprofit group LeadingAge PA, nursing facilities make upthe shortfall by charging more to patients paying with private insurance or with no insurance at all

"One might ask How do you stay in business?" he said. "You charge privately paying residents and their families higher rates to make up what the state is supposed to pay. Its really a stealth health care tax that the governor and the legislator are imposing upon private payers and their families.

According to PHCA, 26 percent of long-term facility costs are paid for by either private insurance or out of pocket. The average annual cost for a single bedroom at a long-term nursing facility is over $113,000.

Medicaid shortfalls are a problem for long-term care facilities across the country. According to an analysis commissioned by the American Health Care Association, all 50 states underfunded medical assistance payments to long-term care facilities in 2016. New York has the highest margin, with a $52.90 deficit, while Virginia has the lowest, with a shortfall of $0.74.View the full article from the Central Penn Business Journal at http://www.cpbj.com/article/20214/CPBJ01/21994/nursing-homes-sound-alarm-on-wolf-budget. Copyright 201 BridgeTower Media. All Rights Reserved.

CREDIT: Gillian Branstetter

Older

Diminished Value Auto Insurance – How Coverage Changes After a Collision Accident

Newer

Maryland Ponders Ways To Stabilize Health Insurance Markets

Advisor News

  • From loss to security: Supporting widowed clients with life insurance
  • Plan now for lower Social Security benefits later
  • The conversation almost no advisor is having yet
  • Why advisors should offer retirement-longevity planning
  • A hybrid approach outperforms the 4% Rule, researchers find
More Advisor News

Annuity News

  • Empower Annuity Insurance Company of America Trademark Application for “EMPOWER WHAT’S NEXT” Filed: Empower Annuity Insurance Company of America
  • Industry pushes back on linking ‘financial strength’ to annuity illustrations
  • Sammons Enterprises & Sammons Financial Group Respond to Reports
  • The Manhattan Life Insurance Company Acquires Union Security Life Insurance Company of New York
  • Cayman Islands premier to meet with U.S. reinsurance regulators
More Annuity News

Health/Employee Benefits News

  • NABIP makes recommendations for prescription drug affordability
  • NAPA Expands E&O Insurance Program for Life & Health Agencies and Launches New Coverage for IMOs
  • What Luigi Mangione’s celebrity says about Gen Z
  • Healey announces campaign to help residents hold onto their healthcare coverage
  • The MolinaCares Accord Grants $100,000 to Illinois Public Health Association to Support Illinois’ Medicaid Population
Sponsor
More Health/Employee Benefits News

Life Insurance News

  • Life Insurance Awareness Month: Time to Reassess Your Coverage
  • U-Haul Holding Company Announces Twentieth Annual Virtual Analyst and Investor Meeting
  • Securian Financial Increases Individual Life Retention to $10 Million, Strengthening Support for High-Net-Worth Life Insurance Market
  • Americans without children are less confident about retirement, Allianz finds
  • The conversation almost no advisor is having yet
More Life Insurance News

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Press Releases

  • Classic Car Insurer OpenRoad Insurance Expands to 40 U.S. States in Two Years
  • How Aspire General Turned an Early Technology Bet Into Claims Automation at Scale with Kyber
  • Adjusto launches AI-Native contents claims services powered by its technology platform
  • URL Insurance Group Celebrates 40 Years of Service, Growth, and Industry Leadership
  • MassMutual Ascend Surpasses $2 Billion in Lifetime Advisory Annuity Sales, Reflecting Continued Momentum in RIA Channel
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.
Insurance News | InsuranceNewsNet