Options for Reducing the Deficit

Discussion in 'Healthcare Reform Discussions' started by anonymous, Oct 9, 2018 at 12:05 AM.

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  1. anonymous

    anonymous Guest

    Impose Caps on Federal Spending for Medicaid in Nursing Home

    Medicaid is a federal and state program which helps with medical costs for people with limited income and resources for families with dependents, elderly over 65 years of age, people with disabilities. A Nursing Facility participating in Medicaid must provide nursing or related services and specialized rehabilitative services to attain or maintain the highest practicable physical, mental, and psychosocial well-being of each resident. (Medicaid.gov) Imposing caps on federal spending in the nursing home will be an effective plan. This will allow nursing homes to put together a system to make sure money is spending accordingly for the elderly in the facility.

    Federal Medicaid spending have grown by a slightly rate of 7% annually as a growth in healthcare cost, mandatory and optional expansions of program eligibility and the amount of state spending that receives federal matching programs. (Congressional Budget Office Website) This is because private insurance doesn’t pay for long term care and the patients must come out of their pocket to pay for service. In such case, this is where Medicaid picks the burden off the elderly. The positive outcome of capping will lock in the difference in the share of long-term care spending, cost will be more predictable, setting a spending limit by budgeting, and have a saving reserve. The negative effect is that it will limit the state ability to respond to the needs, and it will reduce staffing, which will lower the quality care and poor outcomes.

    In conclusion I believe having these changes in the nursing homes will help a lot. Most companies budget but tend to over. Having a cash reserve for each patient to help in the event where they don’t have to touch their Medicaid right away for the first 10 days. This cash reserve can be from non-profit organization that wants to help the community. I believe if a nursing home do this plan and follow guidelines with the state, they will change in the nursing home industry. I firmly believe this plan will help the government as well as the nursing home.

    References

    Nursing Facilities. (n.d) Retrieved from: https://www.medicaid.gov/medicaid/ltss/institutional/nursing/index.html

    Options for Reducing the Deficit: 2017 to 2026. Retrieved from https://www.cbo.gov/sites/default/files/114th-congress-2015-2016/reports/52142-budgetoptions2.pdf