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Legislative News and Views - Rep. Paul Anderson (R)

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Funding for long-term care needs long-term approach

Monday, October 6, 2014

 

By Rep. Paul Anderson

 

The topic of long-term care is one area that needs to be looked at by the Legislature when it returns for its next session in January. Many nursing homes, especially those in out-state Minnesota, are finding it difficult to attract and keep workers and, because of that, are unable to accept more residents. In addition, several facilities in the area have either closed or are in the process of closing, including nursing homes in Hoffman and Glenwood.

 

The problem lies with the reimbursement rates paid to nursing homes by the state on behalf of those residents who no longer can support themselves. It’s estimated that those payments fall approximately $30 per day short of the actual cost of housing a resident in a nursing home setting. And since Minnesota has a policy known as “equalization,” those who are able to pay their own way are charged the same rate as the state reimbursement figure. In addition, nursing homes pay a “bed tax” or surcharge back to the state that can amount to several thousand dollars a year per bed in their facilities.

 

Currently, Minnesota has three different rates it pays to nursing homes across the state, and those rates are based primarily on location. Facilities in the metro area are paid one amount, while those outstate are paid either a “rural” rate or a “deep rural” rate. Nursing home administrators I’ve talked with all agree that those rates, especially those for rural or deep rural areas, are not sufficient to cover their cost of operation. Because of this shortfall, some facilities, including a large nursing home in Alexandria, have cut back on the number of beds available for residents. We are already seeing a shortage of services in some areas as prospective nursing home residents must look to facilities further away.

 

Yes, the entire aspect of senior care is changing, with more emphasis placed on staying in one’s home longer by utilizing services such as Meals on Wheels and Home Health. And the fastest growing segment in the area of senior care is assisted living. However, the baby-boomer generation is hitting retirement age, and as this segment of our population ages, there will be even greater need for senior care, including nursing homes. We must be ready for that surge in demand for senior services.

 

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After beautiful fall weather a couple of weekends back, we are back in the pattern of cool and damp conditions. Crops take on moisture even from over-night humidity and don’t dry out again without sunshine, which has been in short supply recently. From observing conditions while driving around the district, some corn fields still appeared too wet to chop and put in silos, while others which were nipped by frost have totally lost their green color. With our recent spate of cool and cloudy weather, it would appear that the corn harvest will be a wet one, with lots of propane gas needed to dry the crop. However, the mathematics don’t look good as the price of corn has plummeted down below $3 per bushel, and an expensive dryer season would simply add to the negative cash flow.

 

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