N.J. shows worst Medicaid shortfall. (State News).An independent analysis of the Medicaid Medicaid, national health insurance program in the United States for low-income persons; established in 1965 with passage of the Social Security Amendments and now run by the Centers for Medicare and Medicaid Services. program released in July by BDO Seidman BDO Seidman, LLP is the United States arm of BDO International, one of the largest accounting firms outside of the Big Four. History BDO Seidman, LLP was founded as Seidman and Seidman in New York City in 1910 by Maximillian L. Seidman. , a national accounting firm, revealed that New Jersey nursing homes are the nation's most underfunded un·der·fund tr.v. un·der·fund·ed, un·der·fund·ing, un·der·funds To provide insufficient funding for. underfunded adj → infradotado (económicamente) , with a per-patient daily shortfall Shortfall The amount by which the capital required to fulfill a financial obligation exceeds available capital. Notes: Shortfall risk is often combated with an efficient hedging strategy created by a fund, group, institution, or individual. of $22.33, or more than $248 million annually. The study, prepared for the American Health Care Association The American Health Care Association (AHCA) is non-profit federation of affiliated state health organizations, together representing more than 10,000 non-profit and for-profit assisted living, nursing facility, developmentally-disabled, and subacute care providers that care for , found that nursing home care nationwide is underfunded by at least $3.5 billion annually. Paul Langevin Paul Langevin (January 23, 1872 – December 19, 1946) was a prominent French physicist who developed Langevin dynamics and the Langevin equation. , president of the Health Care Association of New Jersey, says that although the state's Medicaid reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. rate of approximately $125 per patient per day is far from being the nation's lowest, New Jersey providers have one of the highest cost factors in the country. "Last year we had about 40 facilities in Chapter 11," says Langevin. "For the 2002 budget year, we requested $60 million in additional state funding, which would have brought about $120 million into the system. We got zero from the legislature." Langevin adds that this year--given New Jersey's budget deficit of over $5 billion--providers asked the legislature for level funding and received it, along with an infusion of $20 million to increase the rate of pay for nursing staff, which represents about 40 percent of New Jersey providers' costs. "We're continuing to talk to the legislature," he says. "But things aren't likely to get better as the nursing shortage increases the cost of our direct patient-care staff." Joe Lubarsky, national director of BDO Seidmans Long Term Care Services, says the increasing budgetary "symbiosis symbiosis (sĭmbēō`sĭs), the habitual living together of organisms of different species. The term is usually restricted to a dependent relationship that is beneficial to both participants (also called mutualism) but may be extended to " between Medicaid and Medicare, along with a negative fiscal outlook, jeopardizes the nation's long term care system. He states that "The problem is compounded by the potential reductions in Medicare revenue due to elimination of certain payment add-ons effective Oct. 1, 2002, and current budget deficits facing most states." Medicaid is the largest funding source for long term care PUBLIC PAYERS Out-of-pocket 23% Private insurance 11% Other private 4% Other public 3% Medicare 14% Medicaid 45% Note:Amounts do not include unpaid care provided by family members or other informal caregivers or expenditures for nursing home and home health services provided by hospital-based entities. SOURCE: GAO ANALYSIS OF 2000 DATA FROM THE CENTERS FOR MEDICARE AND MEDICAID SERVICES AND THE MEDSTAT GROUP Note: Table made from pie chart |
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