THE N.H. SENATE TOOK A COMPASSIONATE APPROACH TO VITAL CARE
Medicaid Reimbursement Must Be Improved
Nursing home caregivers and all the staff who support quality care -- activities professionals, dietary, housekeeping, and maintenance workers -- are there for us, but Medicaid funding cannot keep pace with wage increases. Through February, federal data showed hourly wages for long-term care facilities up over 34% since February 2020, which is staggering. The cost of food has risen by a similar amount as have costs for medical supplies and equipment, which now face tariff-driven increases too.
While the N.H. House would have cut Medicaid rates in the new state budget that will take effect July 1 the N.H. Senate rejected that approach and endorsed the funding level that Gov. Ayotte proposed.
Medicaid is a Precarious Funding Source for Our Most Vulnerable
Most nursing home residents have their care paid for by Medicaid, and delays in the completion of Medicaid applications or processing can result in a single nursing home carrying hundreds of thousands of dollars in unpaid bills. The Senate would address this by giving the Department of Health and Human Services (DHHS) more resources with assistance from nursing home providers.
DHHS has worked collaboratively with providers to address this issue, because there's no margin for waiting. According to a May 2024 report from the Federal Reserve Bank of Boston, New Hampshire nursing homes had New England's second-worst median operating margin (at -5.2%) in 2022-23. Financial distress can prevent nursing homes from taking in those awaiting hospital discharge, create waiting lists for needed care, and jeopardize the continued existence of facilities.
Policymakers must shore up this vital safety net!