Elderly Parents & Grandparents Losing their Benefits? Up to 37,000 Patients & Residents!

Posted: May 9, 2018; Updated: May 10, 2018

Louisiana DHS might evict up to 37,000 Medicaid recipients (disabled and elderly) from their nursing homes and group homes by July 1st. This group includes 17,000 people living in nursing facilities, 2,000 in group homes for those with developmental disabilities, 7,000 receiving certain waivers, and others in community-based programs. Other Medicaid recipients might also be affected to include those receiving outpatient drug and alcohol treatment. All those individuals could lose their eligibility to receive benefits, due to unexpected state budget shortfall of more than $500 million, explains the Deputy Louisiana Department of Health Deputy Secretary Michelle Alletto.

Medicaid is a federal-state health insurance program for low-income individuals who meet the individual state income- and asset- eligibility criteria. This includes those who are 65 years old or more, and also meet their state eligibility requirements. More than 1 million people are part of the Medicaid program in Louisiana, health officials said.

State Budget Shortfalls: The State of Louisiana reported tax shortfalls of $648 million, largely due to the "elimination of certain state taxes" which were never replaced by other sources of revenues. With no projected added revenues, the Louisiana Legislature will make cuts to its next budget. The House version proposes $538 million in state health care cuts. With expected loss of $1 billion in federal matching, the state of Louisiana might forfeit up to $1.8 billion in funding (O'Donoghue, (2018).

Impact on Employment: If approved, the proposed state budget would cut reimbursement to nursing homes and group homes. As a result, the industry might lose more than 25,000 jobs, according to the Louisiana Nursing Home Association.

Individual Loss: Many parents and grandparents would lose their benefits, if the Medicaid budget cuts are approved. Betty Waller, an 89-year old nursing home resident, has used all of her life savings for care. However, her stay is no longer sustainable, without Medicaid subsidizing her continued nursing home care. She needs the government to assuage her fear, about " .. won't be living under a bridge somewhere" (Begnaud, 2018). 

Fearful for their loved ones, many individuals went on social media to express their concerns about their parents losing their only place of stay. David Grabert tweeted as "Worried over calls from Broadway Elder Living Center advising that #Medicaid support for my 90 y/o father (a Korean War vet) and my 86 y/o mother may get cut off ... Mom called me crying over this unconscionable threat to losing nursing home care desperately needed."

Jim Tucker, the CEO of Comm Care Corp and a former Louisiana House Speaker, is bedeviled by the Louisiana Legislature's surreal proposed budget cuts. He is worrisome about those "old and frail" residents who might lose their funding and their nursing home. He cannot fathom, " ... the worst treatment for Louisiana 's greatest generation ..."

Dollars and Cents: In its approved version, the State House of Representatives proposed the elimination of four Medicaid programs for the disabled and elderly - a total of $538 million in state cuts (O'Donoghue, 2018). The Republican Rep. Cameron Henry of the Appropriations Committee prefers "a sustainable budget over the long term" (Begnaud, 2018).

Now, the State Senate is "working" its side of the budget. After hearing testimony from residents and their family, the Republican Sen. Jim Fannin, a member of the Senate Finance Committee, agonized over the issue, “ ... everyone to see the challenge we truly have on an annual basis ... another $500 million next year, and another $500 million next year, ..."

For Gov. John Edwards, he wants to assuage people's fear, "I'm not scaring anybody by design." He admits that "The cuts are so catastrophic ... the legislature has failed to act ..."(Begnaud, 2018).

Medicaid Program Cuts & Eligibility: The proposed budget would cut four programs which are considered optional under Medicaid. Such criteria doesn't affect the state's status as Medicaid provider, according to Jay Dardenne, commissioner of the Division of Administration.

The largest of these four programs is the Medicaid Long Term Care Special Income Level Program. It provides health services for 80% of nursing home residents - those elderly, blind and disabled with monthly income between $750 and $2,250, explains Jim Tucker. He questions the viability of the proposed income threshold of "$750 a month or less."

Eviction & Changes: Eviction notices will be mailed out this Thursday to those Medicaid recipients who might lose their benefits, if the proposed cuts are approved. Those recipients include patients at nursing home, residents with development disabilities at group homes, as well as others at home-based (Roberts, 2018).

If budget cuts are approved, changes will not happen anytime soon. First, the Centers for Medicare & Medicaid Services must approve the changes. The nursing home residents or their family can file for appeal. This could delay those changes for years (O'Donoghue, 2018).

Alternative Delivery of Care: If the state Medicaid funding were to be cut, the agency must evaluate other viable options to relocate the recipients. By law, the state prohibits the eviction of patients without "a medically safe place for care," noted CEO Wayne Plaisance of Chateau de Notre Dame nursing home. Mark Berger, Director of the Louisiana Nursing Home Association, laments the residents' eviction and loss of care. He noted, "Once residents are deemed ineligible for the benefits ... discharged from their nursing facility ... find other housing options ... vital healthcare services ... to continue to live."

Sister Ann Lacour of Chateau De Notre Dame New Orleans faith-based retirement community is baffled whether "the programs are discontinued." She hopes, " ... our Legislature will find a solution ... "

References:

Burnside, Tina & Darran, Simon. (2018, May 9). Tens of thousands of Louisiana residents could face eviction from nursing and group homes. CNN. https://www.msn.com/en-us/news/us/tens-of-thousands-of-louisiana-residents-could-face-eviction/ar-AAwZkLK?ocid=U453DHP

O'Donoghue, Julia. (2018, May 8). Louisiana will put 37,000 Medicaid recipients on notice that they could lose benefits. The Times-Picayune. https://www.nola.com/politics/index.ssf/2018/05/people_who_are_elderly_disable.html

Roberts, Amanda. (2018, May 8). Nursing home leaders call for change ahead of Medicaid warning letters. Fox8 Local First. https://www.fox8live.com/story/38143423/nursing-home-leaders-call-for-change-ahead-of-medicaid-warning-letters

Begnaud, David. (2018, May 9). Thousands of elderly, disabled face eviction from Louisiana nursing homes over Medicaid cuts. CBS. https://www.cbsnews.com/news/thousands-of-elderly-disabled-face-eviction-from-louisiana-nursing-homes-over-medicaid-cuts/