Nursing homes face drastic Medicaid funding cut

September 27, 2019

The fight to protect nursing homes from a massive $250 million Medicaid cut in the New York State budget continues.  If this cut passes, over 600 nursing homes around the state will be affected. Tens of thousands of nursing home residents will feel the pain. The cut will impact many direct care jobs in nursing homes, and some nursing homes will be at risk of closing. How did this come to pass and what can you do about it?

In this year’s New York State budget, the Department of Health was asked to look at the formula used to calculate how much Medicaid funding is provided to nursing home facilities (the case-mix index, CMI), with an objective of improving the distribution of funding. Yet, instead of achieving this objective, the Department of Health proposed an across-the-board cut of $250 million in Medicaid funding to nursing homes.

Already, nursing homes across the state are reimbursed nearly 20 percent less for the care they provide.  The cut will force nursing homes to slash resources going to direct care for residents, 75 per cent of whom will be affected. Nursing homes that may be forced to close would mean that residents will have to relocate to another facility, likely further away from their families, or find some alternative.

Most of us know someone who lives in a nursing home and we understand the immeasurable value of providing quality care for aging friends and family members. Despite limited resources, New York has some of the best facilities in the country.

Our elected representatives have the power to do something about this.  That is why we are calling on everyone to call their representative and tell them to stop this devastating cut.