Act now to support quality care for older Iowans before it’s too late.
Kris Hansen | The Courier Guest Column
What can you get for about $3.33 these days? Barely a cup of coffee.
Yet that’s the hourly reimbursement rate the state of Iowa contributes for our most frail elders who have outlived their money — and it’s supposed to be enough for round-the-clock nursing care, safe shelter, furnishings, utilities, food, dining assistance, personal and medical supplies, an array of leisure activities, transportation to appointments, maintenance, repairs and insurance. Yes, that’s medical care and quality of life for $3.33 per hour.
Surprised? Medicaid funding for nursing homes typically gets reported in multiple millions of dollars that are spread across hundreds of nursing homes to thousands of residents. But when we break it down, the reimbursement for a resident on Medicaid is around $240 per day. The resident actually pays around $40 of that through Social Security. Of the remaining $200, the federal government chips in an entitlement match of 60% ($120) and the state of Iowa picks up the remaining 40%, which is $80 per day or $3.33 per hour.
If that doesn’t sound like enough for all we provide, you’re right. Our actual costs at Western Home Communities are closer to $340 per day. Multiply that $100 difference by each resident, by 30 days per month, and you can start to understand the mounting financial losses faced by Iowa nursing homes.
A Medicaid funding gap is nothing new, but the devastating amount of this shortfall is. We simply can’t pass along all the out-of-control costs resulting from double-digit inflation and 20% to 30% higher labor costs caused by a critical health care worker shortage, especially staffing agency costs.
This impacts every single Iowa nursing home. At least 23 have shut their doors during the past 15 months, and more are sure to follow. Most of us have made tough decisions to reduce the number of people we serve, cutting our losses to keep the doors open.
The more nursing homes close or reduce their services, the more families will suffer. Iowans won’t be able to find the care they need, especially nearby, which will separate them from loved ones and create an additional burden on families.
There is a solution. This is a rebase year for Iowa nursing homes, the every-other-year time when state legislators set nursing home funding along with an inflation factor. I strongly urge that Medicaid funding to provide nursing home care be given high priority during this budgeting process.
I recognize and respect that developing a balanced state budget is difficult at best. But this is the safety net for our most vulnerable older Iowans when they can no longer live alone.
Iowa’s nursing homes already provide an incredible value at $3.33 per hour, and another $1 per hour toward a full rebase would go a long way in helping us honor the commitment we’ve made to those who need care.
If you agree that our oldest and most frail Iowans deserve another $1 per hour to better meet their needs, please let your local legislators know soon. You can find their contact information online at legis.iowa.gov.
None of us can predict the future nor whether our health will decline to the point that we need nursing home care. That’s why nonprofit organizations like Western Home Communities are passionate about creating the best environment with the best caregivers: so all elders can live out their remaining days with purpose and dignity.
Please speak up so quality care is still there when you or a loved one needs it.