Legal Analysts Say That Nursing Homes Industry Medicate Rate Cuts Violate Federal Laws
On 27.04.11, In Legal Industry, by Blake
A legal analysis made available to the skilled nursing home industry concerning a proposal for a reduction in the Medicaid rate to cover the expenses in caring for the seniors in Nevada states that the cuts would be in violation federal laws.
The proposed $20 cuts for every Medicaid resident per day are contained in the budget of Gov. Brian Sandoval purely as a means to alleviate the budgetary crisis.”
Since Nevada was not able to perform the analysis required under federal law prior to reducing such rates, the reduction would be in violation of federal laws that are within the jurisdiction f the 9th U.S. Court of Appeals, which include the state of Nevada.
The analysis further said, “Therefore, the rate reductions, if implemented, will be a violation of federal law and will leave Nevada vulnerable to a series of costly legal challenges, which could well result in imposition of an injunction against the rate reductions, given the current judicial precedent.”
It also stated, “The unlawful rate changes could also affect federal funding of Nevada’s Medicaid program. Therefore, the legislators must find alternate means of balancing the budget that do not include reducing rates to Medicaid providers.”
The Senate Finance Committee was furnished a copy of the memo from the legal firm of Lionel, Sawyer & Collins to Charles Perry of the Nevada Health Care Association, the group that represent the skilled nursing home industry in Nevada.
The committee listened to testimony on Senate Bill 54, which would modify state law concerning a nursing facility provider tax to permit reductions in the Medicaid rate.