Massachusetts Nursing Home Operators Sue State for Increased Medicaid Payments

A group of eight Massachusetts nursing homes and the Massachusetts Extended Care Federation have filed suit against the state in Massachusetts Superior Court in an attempt to increase Medicaid reimbursements, the Boston Herald reports. The plaintiffs anticipate that the state on Jan. 31 will approve an "average" reimbursement rate increase of 1.5%, which will cover the first six months of this year. State officials have said that they intend to increase the rates again in July. Nursing home operators, who say the 1.5% increase is not high enough, have asked the court to "halt" the expected increase and "force the state to pay more." Nursing home operators charge that the state currently pays nursing homes $15 to $20 less per resident per day than the actual cost of care. In addition, industry leaders say rate increases have averaged 2% per year over the last 10 years, while care costs have increased 4% to 5% per year. The lawsuit also seeks a "long-term evaluation" of how the state calculates reimbursement rates. W. Scott Plumb, senior vice president of the Massachusetts Extended Care Federation, said, "We have tried to work very hard with the state, but we've reached a point with their latest proposal that this (lawsuit) is all that's left to us." State officials declined to comment on the lawsuit (Powell, Boston Herald, 1/30).