Contact:
Susan Feeney (AHCA) 202-716-1110
Alliance – Debra DeShong Reed (202) 528-4214

NC Senators Thanked for Opposing $21.8 Million Funding Cut to State’s Medicare Beneficiaries;
Dole, Burr Join Sens. Coleman, Conrad, Roberts in Expressing “Deep Concern” With Looming Nursing Home Funding Cut

Washington, DC -- The American Health Care Association (AHCA) and Alliance for Quality Nursing Home Care today praised North Carolina Republican Senators Elizabeth Dole and Richard Burr for joining the growing bipartisan effort in the U.S. Senate to prevent the Bush Administration from moving forward with regulatory-driven cuts to seniors’ Medicare Part A nursing home funding – cuts that will result in North Carolina seniors losing $21.8 million in the year ahead.

Specifically, Senators Dole and Burr have joined Senators Norm Coleman (R-MN) and Kent Conrad (D-ND) in a letter to be issued to Health and Human Services (HHS) Secretary Mike Leavitt. The letter expresses their deep concern that high-quality skilled nursing care for America’s seniors will be threatened if the Centers for Medicare and Medicaid Services (CMS) moves forward with an administrative proposal – in the coming weeks -- that would cut $770 million in Medicare funding for skilled nursing facility (SNF) care in 2009 and more than $4 billion over the next five years.” Senator Pat Roberts (R-KS) issued his own letter to Secretary Leavitt on this matter several weeks ago.

“It is highly significant that Senators Dole and Burr have joined the growing effort in the U.S. Senate to speak out and oppose the Administration’s Medicare funding reductions, and we thank them for doing so,” said Bruce Yarwood, President and CEO of AHCA.”Their support further demonstrates how members of the President’s own party have objectively evaluated how these cuts will hurt their state’s Medicare beneficiaries, and are now acting upon that determination to protect their elderly constituents.”

In thanking Senators Dole and Burr, Alan Rosenbloom, President of the Alliance, observed, “Lawmakers of both parties, in both chambers, are stepping up to oppose the Bush Administration on this important health policy matter because it makes little sense to first hurt seniors’ care, and then do so in a manner wasteful of tax dollars. This is harmful, ill-considered policy.”

The Coleman-Conrad letter to Sec. Leavitt, now joined by Sens. Dole and Burr, states the following: “As you know, in 2005, CMS revised and expanded the Medicare patient classification categories - called resource utilization groups (RUGs) - which are used to set Medicare Part A daily payment rates for beneficiaries needing Skilled Nursing Facility (SNF) care.  In a July 2005 statement, the agency stated, ‘The new payment plan will more accurately compensate providers for the care of medically complex patients by creating new payment categories that more closely match the kind of services being provided to them. At the same time, CMS implemented changes that encouraged the movement of certain high-acuity Medicare beneficiaries to SNFs.  As a result of these policy changes, the site of care for a significant number of high acuity patients appropriately shifted to SNFs. A recent analysis shows that this shift saved Medicare an estimated $709 million.” (Source: Avalere Health, LLC)

The letter the two North Carolina Senators just joined also states, “CMS’ proposal to correct a ‘forecast error’ will jeopardize the significant quality improvements made by the SNF community in recent years as well as the ability of SNFs to continue caring for high acuity patients.  Because SNFs rely on Medicare to make up for chronic underfunding by the Medicaid program – an average of $13 per day for every Medicaid beneficiary in nursing homes nationwide – it is critically important that Medicare reimbursement remain fair and consistent.  We believe that if CMS were to finalize its proposed rule, the ability of providers to care for our nation’s most vulnerable population – the frail elderly and disabled – would be severely threatened.”

(Full text of Coleman-Conrad letter to HHS Sec. Leavitt available at www.ahca.org).

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