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Obama’s proposed budget calls for Medicare/Medicaid cuts

February 8, 2012
by Patricia Sheehan
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President Obama’s proposed budget for 2013 would reduce spending for Medicare and Medicaid, including cuts in Medicare payments to nursing homes.

The proposed budget, scheduled for release next week, features up to $3 trillion in deficit reductions over 10 years, according to a report in The Wall Street Journal. It also includes proposals to cut approximately $248 billion on Medicare and $72 billion on Medicaid and lower payments to nursing homes, reports The Wall Street Journal.

The American Health Care Association and National Center for Assisted Living (AHCA/NCAL) today issued its budget recommendations to the White House, calling for funding increases in Medicaid while continuing current trends in Medicare funding for the long-term and post-acute care programs.

Highlights of AHCA/NCAL’s budget recommendations include: no changes in Medicaid provider tax authority, $4.88 billion more in Medicaid funding for states based on previous annual shortfalls, and to explore new models of care in accordance with the Affordable Care Act for potential savings.

“It’d be nice to see more efforts around quality efforts instead of always figuring out how to cut and adjust rates,” David R. Gifford, MD, MPH, senior vice president of Quality and Regulatory Affairs at AHCA, told Long-Term Living. “This really is all about quality and the people we serve, and we don’t see that reflected in the budget.”

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