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                                       *IAHSA Office will be closing at 12pm on Fridays.*

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How it works Searchable Directory Member Directory Virtual Tradeshow   Medicare: Payment Cuts Proposed in 2010 Tell Legislators: NO   June 15, 2009: President Obama has just called for a freeze on Medicare payment rates for skilled nursing facilities in 2010 in addition to the home health care payment freeze included in his earlier budget proposal. The President proposed the reimbursement freeze to provide additional spending cuts to offset the cost of health care reform. While the Medicare Payment Advisory Commission (MedPAC) recommended no payment update for skilled nursing facilities next year, it noted that a freeze would have a disproportionately severe impact on facilities serving those with complex care needs. These facilities are largely the not-for-profits whose Medicare margins, according to MedPAC, already are small to non-existent. The denial of the payment update, combined with a pending recalibration of Medicare payment rates, could result in Medicare payment cuts of 3.3% or more for skilled nursing facilities, depending on their case mix and geographic location. Medicare payment cuts would add to the Medicaid reimbursement reductions that skilled nursing facilities in many states have experienced as states grapple with growing budget deficits due to the recession. The combined Medicare and Medicaid cuts would make it more difficult than ever to finance the kind of services that elders are entitled to expect. Although MedPAC recommended no home health care payment update for 2010, health care reform proposals feature strong recommendations about expanding access to home health care as a perceived less expensive alternative to nursing home care. If more services are to be provided in the community, the resources must be committed there as well. Congress will have to consider Medicare legislation this year. We must persuade legislators not to include these damaging proposals in any bill that comes to the floor of the House or Senate. Please feel free to personalize your message to your legislator with specific information on the way in which your operations would be affected by the proposed payment freeze and any Medicaid cuts you have experienced as well. Click Here to get the sample letter after entering your zip code in the link and click on "go."

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