[Congressional Record Volume 148, Number 137 (Thursday, October 17, 2002)]
[Senate]
[Page S10659]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SKILLED NURSING FACILITIES
Mr. SMITH of Oregon. Mr. President, I would like to raise another
issue today which has a major impact on older and disabled Americans
and their families, nursing homes. Under current law, Medicare rates
for seniors in nursing homes were reduced by ten percent as of October
1, because a series of previously-enacted add-on provisions expired.
Let me be clear. On October 1, the average per diem payment to a
nursing home to care for a Medicare patient was cut to a level ten
percent lower than it was on September 30. The average rate fell from
$337/day to slightly more than $300/day. This is a real cut.
This negative quirk results from the fact the Clinton Administration
poorly implemented the Balanced Budget Act, BBA, of 1997, and in the
process, set Medicare rates for seniors in nursing homes far below the
levels Congress set out in the BBA of 1997. Recognizing that the new
system was paying much less for nursing home care for Medicare patients
than it had intended, Congress passed the Balanced Budget Refinement
Act of 1999 and then the Beneficiary Improvement Protection Act of
2000, which provided limited fixes to the payment structure for skilled
nursing care through add-on payments. But, because it was expected
HCFA, now CMS, would ``refine'' the rates and fix the problem, these
add-ons were temporary. However, CMS has not yet acted, and the ``add-
on'' provisions have now expired.
Recognizing the pending cuts needed to be prevented, in June, I,
along with several of my Senate colleagues, introduced the Medicare
Skilled Nursing Beneficiary Protection Act of 2002. Because I felt
Congress must ensure beneficiary access to quality care, my bill would
protect funding levels for Medicare skilled nursing patients by
maintaining payments at 2002 levels going forward.
During the last few years, five of the nation's largest providers of
long-term care have filed for Chapter 11 bankruptcy protection. Some of
those companies are just now emerging from that wrenching process.
Moreover, 353 skilled nursing homes have closed. In my home State of
Oregon alone, 23 skilled nursing facilities, SNFs, have closed--a loss
of almost 1,500 beds. For a small state like Oregon, this is a
significant loss. With the cuts in Medicare funding, a vital segment of
our country's health care system is beginning to be thrown, once again,
into crisis. More facilities will close. Patients, especially those in
rural areas, will find it more difficult to obtain the long-term care
services they need.
The instability of skilled nursing facilities is expected to worsen
as states reduce Medicaid expenditures in the face of significant
budget shortfalls and as private market capital continues to withdraw
from the sector. If Congress goes home before re-instating the Medicare
payment add-ons, it will result in failures in the sector that will
translate to unparalleled access problems for Medicare patients needing
care in our nation's skilled nursing facilities. I will do everything I
can to ensure quality care for our nation's seniors is not threatened.
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