President Biden targets Medicaid nursing homes

On Behalf of | Jun 16, 2022 | Estate Planning |

Estate planning can be a lengthy and complex process. A lawyer may help you to plan your estate after your death, but young people rarely consider how they will pay for nursing home care. Medicaid-certified nursing homes bear the brunt of the workload for long-term care in New York. President Biden is following the lead of New York’s legislature in regulating how Medicaid funds are spent in nursing homes.

President Biden’s role

President Biden’s 2022 State of the Union address discussed Medicaid-funded nursing homes. President Biden explained that 15,500 Medicaid-funded nursing homes are given tens of billions of tax dollars to provide expert care. The issue for President Biden and The White House is how much of the Medicaid funding is used for maintenance, administration, and contracts with private companies.

Federal agencies follow New York’s lead

The use of federal and state funds to pay for Medicaid-funded nursing homes has led to the introduction of mandates. The State of New York has introduced a mandate requiring 70% of its funding to be spent on direct care. At least 40% of this funding needs to be spent on staffing. The New York mandate shows how estate planning needs to include plans for nursing home care.

Costs remain high

The cost of a private room in a nursing home has climbed above $100,000 per year. Medicaid-funded nursing homes offer a low-cost alternative, but the direct care received by patients has become an issue. Nursing home groups explain that maintenance is a key expense needing to be covered. Supporters of mandates fear nursing home owners are hiding their Medicaid funding behind private laundry and catering companies owned by the same corporate groups.

Starting your estate planning now is a good option. The battle over Medicaid-funded nursing homes is bringing attention to the problems that seniors face to receive the proper care.