On Monday, March 7, 2011, Care Providers of Minnesota Board member Tom Pollock gave testimony in the Senate Health and Human Services Committee, as a part of the testimony from the Long Term Care Imperative, about Governor Dayton's proposals to Older Adult Services. In his testimony, he outlined how Governor Dayton turned his back on the state’s most vulnerable adults with his proposed biennial budget that cuts $53 million out of vital programs that ensure Minnesota’s poorest seniors have access to care. These cuts amount to almost 5 percent to nursing homes and assisted living establishments.

In his testimony, Pollock emphasized that Minnesota’s nursing homes and assisted living providers contribute over 112,600 jobs and over $6.7 billion to the state economy. Over 70 percent of providers’ budgets go to wages and benefits for their employees. The governor’s nearly 5 percent proposed cuts to nursing homes and assisted living establishments undermine this economic engine and will directly lead to increased unemployment for caregivers.

If Governor Dayton’s proposal were to become law, it will impact caregiver wages and benefits and could result in additional job loss. In addition, nursing facilities on the brink of closure are certain to go over the edge if these reductions become law. In rural communities the closure of nursing homes—often the top employer in town—means, in effect, the closure of these small towns.

In addition to the sizeable cuts, the governor proposed a massive $28 million increase in the Medical Assistance surcharge on seniors residing in nursing homes. The surcharge is a true “Granny Tax” that does not go back to providers, but instead is diverted to other budget priorities.

Additionally, he emphasized that the compounding effect of the past cuts to Elderly Waiver, combined with the proposed new cuts in Elderly Waiver, means that nursing homes could be the only option left for thousands of low-income Minnesota seniors.

His testimony emphasized the devastating impact of the cuts and reaffirmed the point that the cuts proposed by Governor Dayton represent tens of millions in lost economic activity for Minnesota at a time when the state’s chief executive should be focused on economic recovery.

In summary, Tom stated “we cannot expect Cadillac Care at Pinto payments.”

Toby Pearson
952.851.2480
tpearson@careproviders.org

Resources