Increase Medicaid Income and Personal Care Service Hourly Rate for Adult Care Homes


Increase Medicaid Income and Personal Care Service Hourly Rate for Adult Care Homes
The Issue
My entire life has been dedicate to caring and providing services for those who are elderly, and mentally challenged. My whole being is in my career. Due to the lack of funding from NC Legislation and NC medicaid we are struggling to sustain within the industry. OUR VOICES ARE LOUD BUT NOT HEARD. I am asking for your endorsement after you read the information below.
My name is Whitney Shore. I own and operate an assisted living facility, a place that many people call home, which is currently hovering on the brink of financial defeat. Across the nation, countless similar facilities share this fragile existence, largely resultant from insufficient Medicaid income and low personal care service hourly rates. This predicament places not only the existence of our businesses in danger, but more importantly, jeopardizes the well-being of thousands who rely on our services.
Medicaid and Social Security are the sole income sources for most residents in our facilities. Due to stagnant Medicaid rates and rising costs of living, numerous adult care homes are on a downward financial spiral, poised to close their doors. The repercussions extend beyond the personal lives of residents and business owners; it places an increased financial burden on the state, driving up costs connected with relocations, hospitalizations and, in some instances, incarcerations.
Could you imagine your loved one losing their home, not by choice but by an economic domino effect beyond their control? An average increase of just 12% in Medicaid income could potentially save numerous adult care homes from bankruptcy, providing a safety net for both business owners and their residents.
The SA rates were flat for over 14 years (2008 - 2022) and were never adjusted for inflation or the actual cost of providing room and board. The cost study is listed below.
SA Cost Modeling Study
The audited cost reports that adult care home providers complete and submit to DHHS every two years (on the odd years) are used by DHHS to conduct a cost modeling exercise to determine the cost of providing room and board and other services required by state law to SA residents and SA residents residing in special (memory) care units or SCU. The cost modeling exercise for the 2022-2023 cost reports was recently completed by DHHS and is attached. The recommendations for the proposed rate adjustments from the cost modeling study are as follows:
Adult Care Homes (non SCU) $1,780 per month, and
SCU Adult Care Homes $2,067 per month.
On a related note, the Social Security Administration recently announced the cost of living adjustment (COLA) for Social Security and Supplemental Security Income (SSI) for 2025 and the COLA will be 2.5%, which will have the effect of increasing the current SA rates by 2.5% and will result in the following projected increases:
Current SA Basic eligibility rate is $1396 x 1.025 = $1430
$1430 - $70 personal needs allowance = $1360 adult care home rate for 2025
Current SA SCU eligibility rate is $1770 x 1.025 = $1814
$1814 - $70 personal needs allowance = $1744 adult care home SCU rate for 2025
Given the above cost modeling information and taking the 2025 projected SA rates into account, we are still substantially underwater compared to what is costs to provide care compared to what we are being reimbursed as noted below:
SA Basic $1780 - $1360 = $420 or 23% underfunded
SA SCU $2067 - $1744 = $323 or 16% underfunded
In addition to the state not funding the actual cost of providing care to SA residents, a low SA rate, which is also the eligibility rate, also results in many people not being eligible for SA and Medicaid making it harder on families and residents to qualify for adult care home services.
I urge everyone to join my plea for the welfare of our elderly and people with disabilities who depend on these homes. Please stand by us as we appeal to the policy makers to increase Medicaid income and personal care service hourly rate for adult care homes. Help us make changes that matter, save homes that care, and protect lives that are valuable. Sign this petition. Let your voice ring loud and clear in the ears of those responsible for these policies. Together, we can drive change and provide stability in the lives of those we serve.

241
The Issue
My entire life has been dedicate to caring and providing services for those who are elderly, and mentally challenged. My whole being is in my career. Due to the lack of funding from NC Legislation and NC medicaid we are struggling to sustain within the industry. OUR VOICES ARE LOUD BUT NOT HEARD. I am asking for your endorsement after you read the information below.
My name is Whitney Shore. I own and operate an assisted living facility, a place that many people call home, which is currently hovering on the brink of financial defeat. Across the nation, countless similar facilities share this fragile existence, largely resultant from insufficient Medicaid income and low personal care service hourly rates. This predicament places not only the existence of our businesses in danger, but more importantly, jeopardizes the well-being of thousands who rely on our services.
Medicaid and Social Security are the sole income sources for most residents in our facilities. Due to stagnant Medicaid rates and rising costs of living, numerous adult care homes are on a downward financial spiral, poised to close their doors. The repercussions extend beyond the personal lives of residents and business owners; it places an increased financial burden on the state, driving up costs connected with relocations, hospitalizations and, in some instances, incarcerations.
Could you imagine your loved one losing their home, not by choice but by an economic domino effect beyond their control? An average increase of just 12% in Medicaid income could potentially save numerous adult care homes from bankruptcy, providing a safety net for both business owners and their residents.
The SA rates were flat for over 14 years (2008 - 2022) and were never adjusted for inflation or the actual cost of providing room and board. The cost study is listed below.
SA Cost Modeling Study
The audited cost reports that adult care home providers complete and submit to DHHS every two years (on the odd years) are used by DHHS to conduct a cost modeling exercise to determine the cost of providing room and board and other services required by state law to SA residents and SA residents residing in special (memory) care units or SCU. The cost modeling exercise for the 2022-2023 cost reports was recently completed by DHHS and is attached. The recommendations for the proposed rate adjustments from the cost modeling study are as follows:
Adult Care Homes (non SCU) $1,780 per month, and
SCU Adult Care Homes $2,067 per month.
On a related note, the Social Security Administration recently announced the cost of living adjustment (COLA) for Social Security and Supplemental Security Income (SSI) for 2025 and the COLA will be 2.5%, which will have the effect of increasing the current SA rates by 2.5% and will result in the following projected increases:
Current SA Basic eligibility rate is $1396 x 1.025 = $1430
$1430 - $70 personal needs allowance = $1360 adult care home rate for 2025
Current SA SCU eligibility rate is $1770 x 1.025 = $1814
$1814 - $70 personal needs allowance = $1744 adult care home SCU rate for 2025
Given the above cost modeling information and taking the 2025 projected SA rates into account, we are still substantially underwater compared to what is costs to provide care compared to what we are being reimbursed as noted below:
SA Basic $1780 - $1360 = $420 or 23% underfunded
SA SCU $2067 - $1744 = $323 or 16% underfunded
In addition to the state not funding the actual cost of providing care to SA residents, a low SA rate, which is also the eligibility rate, also results in many people not being eligible for SA and Medicaid making it harder on families and residents to qualify for adult care home services.
I urge everyone to join my plea for the welfare of our elderly and people with disabilities who depend on these homes. Please stand by us as we appeal to the policy makers to increase Medicaid income and personal care service hourly rate for adult care homes. Help us make changes that matter, save homes that care, and protect lives that are valuable. Sign this petition. Let your voice ring loud and clear in the ears of those responsible for these policies. Together, we can drive change and provide stability in the lives of those we serve.

241
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Petition created on October 27, 2024