Emergency Medicaid Relief Passes Congress, Signed by President
Following the Senate’s approval last week, The U.S. House on Tuesday passed a measure extending emergency Medicaid relief (FMAP) until June 30, 2011; President Obama signed the legislation on August 11. OHCA praised the vote and urged Governor Strickland and the Ohio General Assembly to take advantage of the opportunity, indicating that a portion of the nearly $500 million in additional funding for Ohio’s Medicaid program should be used to retain access to quality care for the state’s most vulnerable seniors, and protect key frontline healthcare jobs. OHCA has asked the administration and General Assembly to support legislation that would lower the skilled nursing facility franchise fee (bed tax), and eliminate the reduction of rates to intermediate care facilities serving persons with developmental disabilities (ICF/MR). OHCA is pursuing legislation to implement these changes. The national Center on Budget and Policy Priorities has estimated that Ohio will receive and additional $492 million in Medicaid funding and $361 million in education funding, for a total $853 million addition to assist the state.

The per-bed tax was nearly doubled in the state’s last budget, resulting in an additional toll of $90 million to skilled nursing care providers. For ICF/MR providers, the care they provide to the developmentally disabled is 100 percent funded through the Medicaid program, but MRDD caregivers have suffered rate cuts and freezes for the past five years, despite rising expenses.

The Strickland administration and legislative leaders have not provided any indication of how the money will be used, but with a possible $8 billion hole in the next budget, worries have been expressed about future cuts to education and other state programs. There have been some suggestions by legislators that Ohio should “bank” the money for use in balancing the next state budget.

“Governor Strickland and Ohio’s General Assembly have an opportunity to respond to providers’ need for immediate relief,” said Peter Van Runkle, OHCA Executive Director. “We ask that quick steps be taken to act on reducing the additional tax on SNFs and raising ICF/MR rates. Without such changes residents’ care is placed in jeopardy, the stability of facility staffing is compromised, and good, local health jobs are put at risk.”