Urgently Needed Medicaid

FMAP Funds Go to States 

National Long Term Care Business Coalition Says Funding Will Support Local Economies and Long Term Care Jobs Base

Long Term Care Business Leaders Urge President to Sign Bill into Law

August 11, 2010                                                     Contact: Rebecca Reid

For Immediate Release                                      (410) 212-3843

Washington, DC – Noting the domino effect of adequate long term care funding on local economies and sector jobs, a national long term care business coalition today praised the House of Representatives for “making it official” following the critical Senate passage last week, by passing the Federal Medical Assistance Percentage (FMAP) bill yesterday, a bill that would inject states with new Medicaid funds.  President Obama was quick to sign the bill into law late yesterday.

“Nationwide, the long term care industry provides almost two million jobs and employers account for approximately 1% of the Gross Domestic Product (GDP), “ said Gail Rader Founder of Care Perspectives, Inc. a consulting firm located in Philipsburg, New Jersey and chair of the Steering Committee for the Community Cares Coalition (CoCares).  “Federal funding of skilled nursing facilities directly impacts the stability of sector jobs that in many cases contribute to the quality of care and long term care services for our elderly.  The passage of FMAP is vital in extending urgently needed funding to keep important long term care businesses afloat in a sluggish and still uncertain economy.  Thousands of jobs are at stake.”

As part of the economic stimulus bill, known officially as the American Recovery and Reinvestment Act of 2009 (ARRA), Congress enacted a temporary increase in the Medicaid Federal Medical Assistance Percentage (FMAP) for all states in an effort to protect vulnerable populations in the midst of a deep, enduring recession. In a special one day session, the House passed by a vote of 247-161 yesterday, an extension of FMAP funding for state Medicaid programs from January through June 2011.  

“The nation’s long term businesses praise the House of Representatives for doing the right thing for American’s elderly, small businesses and long term care sector and we continue to urge  Congress and the President to protect both Medicare and Medicaid funding from future reductions,” stated Rader.  “While the passage of FMAP sends a positive signal to state and local long term care businesses, the long term care sector is experiencing $26 billion in Medicare cuts.  Make no mistake and that funding cuts to skilled nursing care creates economic instability in the entire long term care sector.”

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