By Todd Bergstrom
The revised and improved state budget forecast allowed Governor Mark Dayton to buy back about $34 million in cuts to long-term care for the biennium. The areas to be “bought back” as we currently understand them, are as follows:
- The Governor now proposes to reduce rates for component services included under customized living (CL) and 24 hour customized living (24 CL) services by 2% instead of 10% as initially proposed.
- The Governor now proposes a reduction of 10% of the operating payment rates paid for the lowest case mix categories (PA1 and BC1) of the nursing facility (NF) case mix classification system instead of the 25% as initially proposed.
- The governor now proposes to reduce nursing facility operating rates by 1% instead of the 2% initially proposed.
- The proposal to reduce the enhanced nursing facility rates for the first 30 days from 20% to 10% is now fully restored to 20%.
According to certain assumptions and limited budget detail, we now estimate the Governor’s budget to have the following impact:
|
Elderly Waiver |
FY2012 |
FY2013 |
Total |
|
State share (Nov. 10 forecast) |
163,106,180 |
170,181,762 |
333,287,942 |
|
Managing Elderly Waiver and AC programs |
(8,888,400) |
(12,755,400) |
(21,643,800) |
|
Separate EW and NF rates |
(238,000) |
(1,001,000) |
(1,239,000) |
|
Total reduction in payments for EW |
(9,126,400) |
(13,756,400) |
(22,882,800) |
|
Reduction as a percent for Elderly Waiver |
-5.60% |
-8.08% |
-6.87% |
|
Nursing Facilities |
FY2012 |
FY2013 |
Total |
|
State share (Nov. 10 forecast) |
394,683,580 |
379,954,989 |
774,638,569 |
|
Low needs NF case mix |
(3,380,800) |
(3,566,000) |
(6,946,800) |
|
Reduce provider rates and grants by 1% |
(3,946,836) |
(3,799,550) |
(7,746,386) |
|
Modify non-rate payments |
(7,175,000) |
(8,238,000) |
(15,413,000) |
|
Total reduction in payments for NFs |
(14,502,636) |
(15,603,550) |
(30,106,186) |
|
Reduction as a percent for NFs |
-3.67% |
-4.11% |
-3.89% |
|
Total state share for the biennium for EW and NF |
1,107,926,511 |
|
Total reduction in payments |
(52,988,986) |
|
Total reduction as a percent |
-4.78% |
In addition, the Governor also bought back his cuts to the CADI, DD and TBI waiver programs that would have reduced the rates paid to congregate living settings for waiver recipients with lower needs residing there. The Governor also reduced the cut to CADI, DD, TBI, and CAC from 4.5% to 2.0%.
Please contact Todd Bergstrom at the Association office if you have any questions.
Todd Bergstrom
952.851.2486
tbergstrom@careproviders.org
Resources
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Care Providers of Minnesota 7851 Metro Parkway • Suite 200 • Bloomington, MN 55425 Phone: 952.854.2844 • Fax: 952.854.6214 • MN Toll-Free: 800.462.0024 • www.careproviders.org |