Proposed cuts to the Medicaid program outlined in the recent budget reconciliation bill are being met with strong opposition from organizations like PHI International, who warn of a “devastating impact” on the long-term care industry and its dedicated workforce.
According to PHI, these cuts will place significant strain on state budgets, potentially leading to difficult decisions that could hinder innovation and place a heavy burden on American families seeking care for their loved ones. Historically, home- and community-based services (HCBS) have been particularly vulnerable to state budget cuts, as these services are often optional for states to provide.
This time, however, the impact could be more widespread. “Medicaid cuts will bring cascading operating challenges to long-term care providers, among other healthcare operators. Some providers — particularly in rural areas — will likely close down altogether,” PHI stated. This could severely limit access to essential care for individuals in these communities.
The consequences extend to the direct care workforce, which is already facing significant challenges. PHI predicts that job quality will decline as investments stall and workers experience reduced hours and benefits, exacerbating the existing recruitment and retention crisis.
The ripple effects could extend to families as well. With fewer direct caregivers available, family members may need to reduce their own work hours or leave their jobs entirely to provide care for their loved ones. Furthermore, cuts to HCBS could force some individuals to move into skilled nursing facilities against their preference and at a higher public cost. “As more Americans lose access to essential services and supports, the result will be higher costs for other healthcare service providers, including hospitals and emergency departments,” PHI cautioned.
PHI also raised concerns about access to Medicaid for both care recipients and direct care workers. Alarmingly, nearly one-third of direct care workers rely on Medicaid themselves, including Supplemental Nutrition Assistance Program (SNAP) benefits. Proposed new eligibility and verification requirements could threaten their coverage. Additionally, proposed language in the House Agriculture Committee aims to cut $290 million from SNAP, potentially further undermining access to this crucial benefit for direct care workers and families nationwide.
The potential ramifications of these proposed Medicaid cuts paint a concerning picture for the future of long-term care. Industry leaders and advocates are urging policymakers to reconsider these measures to protect vulnerable populations and the dedicated workforce that supports them.