Another Hit on Medicare Funding
Well, I see that Congress has cut another $40 Billion out of Medicare funding. That is for 2010, and over the next ten years the cuts will total $556 Billion! It sure sounds to me like PPS II is here, and it's hitting just as the baby boomer generation just hitting the age of Medicare. Ouch!
The worst impact this might cause, according to one report, is less funds available for home health. Why does this not make sense? Cut funding and reduce services that keep people in their own home, or force them to choose long term care where costs will be significantly higher.
When people run out of Medicare funding and need to stay in long term care, they usually apply for Medicaid. With many states running tight budgets, there are going to be cuts in Medicaid. What happens when the states cut Medicaid? I know some medical practitioners who refuse to see certain insurance carriers because their reimbursement rate is so low the practitioner can't make a profit. If the Medicaid rate is cut to the point that a long term facility can't make a profit, they will be closing. Again just as more LTC rooms will be needed with the boomers coming.
My final thought is that while Congress is trying to manage the budget while cutting costs on Medicare, education, and state funding, are they voting themselves another fat raise like they did after the budget cuts in 1997?
Until next time, hope all your "Thoughts" are Good-
Tim