Q: How does Governor Quinn’s proposed budget affect nursing homes in Illinois? A: The governor’s proposed budget cuts of at least 6 percent in Medicaid funds means a $140 million annual reduction in services provided to Illinois nursing home residents. This massive cut will cause the State of Illinois to lose $70 million annually in federal matching funds.
Q: What are the implications of losing this revenue? A: The proposed budget cuts of at least 6 percent causes a $140 million reduction in services to nursing home residents, including $70 million in federal matching funds. This means the loss of 7,000 health care jobs. These are the people who care for our residents.
Q: Can’t nursing homes do more with less? A: Illinois already ranks 50th in the nation when it comes to Medicaid reimbursement rates. Nursing homes have already cut. It’s not a simple matter of tightening our belts.
Q: What would such cuts in service actually mean for senior care? A: Cuts could lead to increased hospitalizations and fewer seniors going back to their homes. $70 million in federal matching funds will be lost. A decrease in staffing will jeopardize safety reforms that HCCI supported and fought for in the state legislature.
Q: Can’t services be reduced to compensate for the rate cuts? A: Federal law prohibits nursing homes from reducing services to compensate for rate cuts. Unlike other Medicaid providers, nursing homes have no choice in whom to serve or what services to cut.
Q: Are there other implications beyond nursing homes? A: The cuts will result in the loss of 7,000 health care jobs. An additional 11,000 jobs will be lost in the larger supply economy. That’s a total loss of an estimated $335 million to the Illinois economy.
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