HARRISBURG, Pa. — Pennsylvania has approved a $215 million increase to its Medicaid reimbursement floor for nursing homes, a move advocates say will help stabilize facilities struggling with rising operational costs.
The state Department of Human Services announced the funding boost this week, which will take effect in the next fiscal year. The increase represents one of the largest single-year adjustments to nursing home reimbursement in recent state history.
Pennsylvania nursing home operators have long argued that Medicaid rates have failed to keep pace with the actual cost of care, forcing facilities to rely increasingly on Medicare and private-pay residents to balance their books. The new funding is expected to benefit approximately 450 skilled nursing facilities across the commonwealth.
State officials said the increase reflects recognition of workforce challenges, inflationary pressures, and the need to ensure access to long-term care for Medicaid beneficiaries. Pennsylvania has approximately 80,000 nursing home residents, with Medicaid covering roughly two-thirds of them.
Industry leaders welcomed the announcement but cautioned that more work remains. The Pennsylvania Health Care Association noted that while the increase is significant, reimbursement rates still lag behind actual care costs in many parts of the state.
The funding boost comes as neighboring states have also moved to increase nursing home reimbursement, raising competitive pressures. Ohio and New York both approved substantial Medicaid rate increases earlier this year.
Advocates for nursing home residents said the additional funding must translate into better staffing and care quality, not just help facilities balance their budgets. They called for increased transparency in how the new dollars are spent.
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