With all the talk about what the Super Committee has in mind for us seniors, there's not a lot of mention made that the cuts are already starting. And they are painful indeed.
From the Sacramento Bee:
The elderly are already taking a hitWhile national politicians argue about cuts to Social Security and Medicare down the road, cash-strapped state governments are cutting vital services for elderly Americans today. Those suffering most are often those with the least.
In California, budget cuts approved earlier this year mean the closure of some 300 adult day health centers. These centers serve 37,000 medically fragile elderly and disabled people - folks suffering from Alzheimer's disease, stroke or other complications that make it impossible for them to function without assistance. The centers allow them to live a bearable life outside of a 24-hour institution. And they give the family members who care for them at home a desperately needed daytime respite.
While California's situation may be the worst, it's not unique. Washington state's COPES (Community Options Program Entry System), which helps the frail elderly live at home, has also faced severe cuts, and there's good reason to fear for similar efforts in other states.
And the same thing is happening in Florida. People often don't find out until a center is closed. There's just not a lot of publicity.
Skilled nursing facilities are taking a big hit.
Skilled nursing facilities warn of zero profits if more cuts are madeWASHINGTON – Continuing their crusade to make the congressional super committee aware of the repercussions of how cuts to Medicare and Medicaid will impact the skilled nursing facility industry, SNF advocates have released an analysis by Avalere Health that finds if more cuts are made, the industry’s operating margin will be zilch.
Avalere, a healthcare business strategy and public policy advisory company, did the analysis at the request of the Alliance for Quality Nursing Home Care (AQNHC), a long-term care member organization. Avalere’s analysis offers different scenarios, all with negative consequences for the operating margins of SNFs:
• Cuts to Medicare and Medicaid on top of the payment reduction and other changes laid out in a final rule by the Centers for Medicare & Medicaid will result in a SNF industry-wide overall (all payers) reduction in operating margin from 3.8 percent to zero in FY 2012; from 4.4 percent to 0.4 percent in 2014.
..."This is the second analysis of the impact of cuts on SNFs that Avalere has released this month. The first found that CMS’ final rule cuts of 11.1 percent would mean payments to SNFs over the next 10 years would be reduced by $79 billion.
Here is more about the cuts to services offered by nursing homes that will occur under such cuts.
Budget Cuts: To Affect Nursing Home Costs (And Services)?"If you have a loved one in a nursing home now or in the near future, then be ready to pay more and, perhaps, receive fewer services due to tightening Medicare and Medicaid budgets. In fact, you may notice an uptick in your "house bill" as early as this fall."The last few months have been a wild ride on multiple financial levels. This include wild financial consequences at the micro level (e.g., putting gas in your tank and buying milk) and at the macro level (e.g., future funding of Social Security, Medicare, Medicaid and the very real "debt crisis"). While many more challenges lie ahead in terms of budget cuts, some cuts already have been made... albeit under the radar screen.
Several of the budget cuts you should know about actually go into effect this fall, as reported in a recent SmartMoney article. According to SmartMoney, nursing home residents could face higher costs or reduced care once these cuts kick in. Yikes!
On July 29, The Centers for Medicare and Medicaid Services (CMS) decided and announced that they would be compensating for last year's $4 billion shortfall by cutting reimbursement rates to nursing homes by 11.1%. In real terms, the shortfall will reduce government reimbursements to nursing homes. In 2010, nursing homes across the board increased charges on residents by an average of 5%.
The bad news: These reduced government reimbursements likely will trigger even higher nursing home costs for residents beginning this fall. Alternatively, it might trigger a reduction in services to nursing home residents. Either way, the forecast is not pleasant.
Yes, "under the radar screen". And probably more to come when the Super Committee gets through putting everything on the table to get the $1.5 trillion in cuts...maybe more if the president gets his way. He is asking for more than that.
So they are already doing it to the elderly, cutting benefits. To the young folks who think oh goody they are saving money for me in my future....I say good luck on taking up the slack provided by Social Security, Medicare, and Medicaid. I say your lives are about to change, and you will be taking on the responsibilities that your parents and grandparents were able to do for themselves with the money they contributed through their working years.
And shame on Democrats who know what is happening and are refusing to buck the administration on this.