Colorado Assisted Living Association (CALA)

September 1, 2009 Provider Reimbursement Changes

How many Assisted Living providers can handle ANOTHER 1.5% decrease?  The Medicaid rate started at $49.01/day this year, then decreased to $48.03 on July 1, 2009.  Now we have another 1.5% decrease which brings us down to $47.31.  That is a total decrease of $1.70 per day per bed and although it doesn’t sound like a lot, to many ALR owners, it’s HUGE!

Let’s just do some math… $1.70 X 365 days = $620.50.  Then multiply that by the number of Medicaid beds (and many have 80-100% medicaid).  So for a 20 bed facility, that is $12,410.00/year.  For a 60 bed, it is $37,230/year.

So what happens when rates are cut?  Owners have to cut corners somewhere.  Regulations don’t really allow for cuts in staffing.  Perhaps those 24 hour snack availability regs that came out recently could be cut?  Regulations are requiring more and more of owners… more staff, more training, more services. and yet the state continues to cut their pay.  Who suffers in the end?  The residents.  The residents who won’t be going to that extra outing, because  the budget won’t stretch.  The residents who won’t be getting those extra snacks or new paint in their rooms or new linens, or other things which will be cut out of the budget.

This is outrageous!  We need to stand together!  Many of the ALR owners in this state have dedicated their lives to helping people who are less fortunate by accepting Medicaid clients.  Many private pay ALR owners base their rates according to Medicaid reimbursements.  How many ALR’s will be forced to go out of business causing Medicaid clients to move or perhaps even become  homeless?

Call your legislators today!  If the government can bail out the banks and car manufacturers, surely they can afford to let ALR’s continue to survive, maybe even prosper a little so that residents can live better lives.