U.S. Nursing Homes Affected by Cuts

by Rose Broyles

While Congress debates the details of the health care overhaul, nursing homes across the nation are facing a crisis–what is the crisis? layoffs.closures. $16 Billion has been enacted in cuts to nursing care over the next decade by Centers for Medicare and Medicaid Services. That doesn’t include what Congress is planning to do for the billions more in cuts to Medicare funding as part of this new health bill.

Closures and Cuts Nationwide

The funding crisis comes as the nation’s baby boomers age ever closer toward needing nursing home care. The nation’s 16,000 nursing homes housed 1.85 million people last year, up from 1.79 million in 2007, U.S. Census Bureau figures show.

Already, 24 states have cut funding for nursing home care. The state of Connecticut for example, closed four of its facilities and others have laid off workers because of inadequate reimbursement from Medicaid. Some nursing homes have fallen into bankruptcy because of financial problems.

Across the country nursing homes are facing a similar crisis. What’s troubling is that the stimulus money that was approved back in February included $87 billion to help states. But some states have used a loophole to funnel those funds elsewhere instead of health care.

Not just nursing homes

I wrote an earlier article about the crisis California is facing with healthcare cuts. The problem is not only sad, but it’s alarming. As Baby Boomers age, the more in-home and nursing services will be needed. Unfortunately for many low and middle-income seniors, this will be a crisis exascerbated by the government’s unawareness or denial of the reality for millions of people. Nursing homes cost an average of $60-70K a year  across the country. Assisted Living isn’t covered by government aid (unles you are a Veteran and get VA benefits) , and is paid out-of-pocket with reverse-mortgages and other private funding. Eventually, after funding runs out, the senior either goes into a nursing home or goes to live with family. It’s a sad fact that there are no if not scarce options for financial help for seniors who need it. As cuts continue, more and more families will be affected to the point where seniors won’t be the only ones needing assistance. Add to the mess, Social Security may or may not last much longer.

Cross your fingers

At this point, there is no relief in site. As Congress tries to push the bill through by Christmas, we can only guess how the changes are going to affect our nursing home system.


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