Florida Nursing Homes Will Be Taxed To Increase Matching Medicaid Funds
Florida Gov. Charlie Crist (R) last week signed into law legislation (SB 8A) that will place a 5% tax on nursing homes' net revenues as a way to increase the matching federal funds they receive through Medicaid, Florida Health News reports. The tax is expected to draw down 55 cents in federal Medicaid funds for every 45 cents it generates. The tax assessment would generate an additional $3.79 a day paid to the nursing homes by Medicaid, Florida Health News reports.
Nursing homes will begin collecting the money on April 1 under the assumption that CMS will approve a Medicaid waiver that will allow the matching funds to be allocated. Thirty-two states use similar assessments on health care facilities to draw down federal money. According to the Florida Health Care Association, without the tax, nursing homes faced a scheduled 10.5% cut in Medicaid funding, or more than $231 million. FCA Senior Vice President and Chief Operating Officer Tony Marshall said that funding cuts that high also would have resulted in layoffs of 7,000 nursing home personnel. Marshall said, "Facilities would do everything in their power to avoid putting patient care at risk," adding, "I don't know of another way to have done it."
According to Florida Health News, nursing homes -- along with other Medicaid providers -- experienced Medicaid payment cuts during the 2008 regular session as well as in two special sessions held that year for a total reduction in funding of $346 million since 2007. Marshall said that the new nursing home tax will repeal those reductions, adding, "This will protect Florida's oldest, most vulnerable citizens" (Jordan Sexton, Florida Health News, 2/3).
