House lawmakers in Washington D.C. are considering a spending bill that could cut around a trillion dollars in Medicaid spending over the next decade, leading to concern from nursing facilities in Pennsylvania that get much of their funding from the state and federal program.
"I think we're cautiously optimistic that things will work out," said Steven Miller, the director of development and community outreach at Centre Care in Bellefonte.
Centre Care is the largest skilled nursing facility in Centre County that accepts Medicaid.
“Our daily population here is about 220-225," Miller said. "So 70% of that number is what would be a daily average of our Medicaid recipients.”
Miller said Centre Care loses about $110 dollars every day per Medicaid patient.
There’s currently a tax that helps offset that loss. It had been reduced in the House version of the bill, but the Senate added an exemption for nursing homes in its version. Even if the exemption ends up in the final bill, studies show eligibility requirements and red tape could cause millions to lose Medicaid. The Congressional Budget Office estimates nearly 12 million people would lose coverage by 2034.
In a social media post, President Donald Trump said Medicaid, Medicare and Social Security benefits are not being cut, but "strengthened and protected" by eliminating waste, fraud and abuse from those programs.
Jason Moser, Centre County’s controller, said he's skeptical of that claim. He supervises the flow of money in county government.
"We look at fraud, waste and abuse for county funds," Moser said. "And so, when I hear that argument being used as a justification for some parts of the bill, you know, (it) certainly piqued my interest."
Moser said he's seen reports showing there is not waste, fraud and abuse in Medicaid. He worries cuts and changes to the program could lead to reduced staff and services at Centre Care and other nursing facilities across the region.
"I think you may see in some of these rural communities either merging with larger health conglomerates or potentially just shuttering in general," Moser said. "I don't know that Centre County itself would see that, but certainly some of the lower population counties across the state."
Bucktail Medical Center in Renovo already closed its long-term care facility, citing low Medicaid and Medicare reimbursement rates.
The Pennsylvania Health Care Association says 30 nursing homes have closed across the state since 2019, and even more could close if there are cuts to Medicaid at the state and federal level.
President Trump wants Congress to send the bill to his desk by July 4, but some House GOP lawmakers say they have major objections.
