Contact:
Jim Morrell, the Alliance - (202) 457-1110
Susan Feeney, AHCA - (202) 898-9354

Providers Join Forces to Launch Nationwide Advertising Campaigns to Protest Deep Cuts to Medicare, Medicaid Programs for Nursing Home Care
Proposed Cuts Regarded As Deep Enough to Impact Access to Care, Jobs

Washington, DC - The American Health Care Association (AHCA)- the nation's largest long term care provider association - and The Alliance for Quality Nursing Home Care (The Alliance) - an alliance of fifteen of the largest skilled nursing providers in the country, together have launched a national radio, TV and print advertising campaign to educate Members of Congress and the public about their concerns regarding proposed deep cuts to Medicare and Medicaid.

The President's FY 2007 budget proposal calls for $8.5 billion in cuts to Medicare for seniors who rely on skilled nursing care for services such as rehabilitative care after strokes or hip fractures. The budget proposal also calls for $2.1 billion in cuts to the nation's Medicaid programs, which are funded jointly by the states and federal government. Two-thirds of the millions of patients in nursing homes rely on Medicaid to fund their care, and the President's budget plans to cut this program's funding through federal "provider tax" reductions.

The proposed Medicare cuts come at a time when Medicare is "propping up" a grossly underfunded Medicaid program. According to the national accounting firm BDO/Seidman, each year there is an estimated $4.5 billion funding gap between what Medicaid promises in coverage and what it is actually able to pay.

"These ads will help ensure that policymakers and the public understand that cutting Medicare will have a disrupting effect on the economic stability of the skilled nursing sector, which will in turn impact recent quality improvements," said Alan Rosenbloom, President of the Alliance. "Providers have made significant, measurable improvements in care, and cutting back Medicare funding will hurt patients and put caregiving jobs at risk."

Bruce Yarwood, CEO of AHCA, remarked, "This 'one-two punch' of cuts to nursing home care in both Medicare and Medicaid is bad policy that will end up hurting those who need help the most - our nation's frail, elderly and disabled citizens, and the caregivers who provide this care."

Both organizations hope the ads will help educate Members of Congress about the impact proposed cuts would have on both access to care and jobs. The ads are airing in the DC metropolitan area, as well as in Des Moines, Iowa; Concord, New Hampshire; Columbia, South Carolina; Cincinnati, Ohio; and Pierre, South Dakota.

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The Alliance for Quality Nursing Home Care is a coalition of 15 national skilled nursing providers who deliver care to hundreds of thousands of patients on a daily basis.