The Pittsburgh Post-Gazette reported that the sequester may cause Pennsylvania nursing and long-term care homes stand to lose about $37 million this year. The nursing home reductions are from a proposed 2 percent cut in Medicare funding, amounting to $11 billion this year alone affecting hospitals, primary care clinics and other specialty providers, but nursing homes receive Medicare funding, as well.
According to a 2012 analysis by Avalere Health and the Alliance for Quality Nursing Home Care, the sequestration-related Medicare cuts to skilled nursing facilities would total $782.5 million in year one, and $9 billion over 10 years, nationally. In 2012, skilled nursing care facilities saw an 11.1 percent — or $3.87 billion — cut in Medicare funding. CMS said that was actually a “claw back,” designed to combat unintended increases in therapy billing costs.
“On top of that, nursing homes could see other sequester-related reductions — a possible 5.1 percent cut in housing funds for low-income seniors, and another 5.1 percent for Meals on Wheels funding. Both cuts originate from the estimated reduction in Older Americans Act funding, also contained in the sequestration package.”