In an effort to protect their turf, the health plans behind Florida’s managed care program for Medicaid recipients keep saying they help many older Floridians move from nursing homes to live in community settings. What they fail to tell you is that these elders are just a small fraction of nursing home residents – the reality is that some frail elders simply cannot be properly cared for outside a skilled nursing center.
These health plans, along with the state Agency for Health Care Administration, are basing their assessment on seriously flawed calculations. While they say it would cost taxpayers $200 million to remove skilled nursing centers from managed care, such a carve-out would actually save taxpayers $68.2 million per year.
Florida has a long-standing commitment to helping elders stay in their homes or community settings for as long as possible. But we must also recognize that for more and more of the frailest residents, a nursing home is the best, and perhaps only, realistic option.
The state’s erroneous cost estimate is based on an assumption of what it would cost if certain individuals who received home- and community-based services had instead been cared for in a nursing center. But the proposed carve-out focuses solely on exempting long-stay nursing center residents, not those who could otherwise live in community settings. There are no savings to be realized for these individuals because their health and medical needs can only be addressed in a nursing center – they cannot be safely cared for in a home or community setting.
Official state figures show that managed care companies transition only about 4 percent of nursing center residents into home- and community-based care. That means the other 96 percent continue to receive their care in skilled nursing centers. The huge savings touted by the managed care companies simply cannot be realized.
Florida’s system of managed care doesn’t work effectively for long-stay nursing center residents, who can’t take care of themselves or be safely cared for in the community. With those residents stuck in the managed care system, taxpayers are paying approximately $68.2 million in unnecessary fees each year for management services that are not needed, according to a study for the Florida Health Care Association.
In the final analysis, managed care companies are more like insurance companies than like health care providers – if it doesn’t work for their bottom line, they’re not interested. So when your loved one needs the kind of care that can only be offered in a skilled nursing facility, who would you rather entrust with their care: their insurer or their trained caregivers?
Emmett Reed is executive director of the Florida Health Care Association.