As pandemic-related costs and a hike in the minimum wage continue to affect the costs of staying in business for assisted living providers, one state is looking at increasing its Medicaid funding to communities.
Last week, Arkansas legislators asked the state Department of Human Services to look into increasing the rate that the state Medicaid program pays assisted living communities. The request follows a joint meeting of the Senate Committee on Children and Youth and the House Committee on Aging, Children, Youth, Legislative and Military Affairs.
The state dropped its Medicaid assisted living rate from $80.33 to $67.25 in January 2019 following three rate reviews, including two that considered the minimum wage increase, according to a DHS official who argued that the previous rate was “substantially higher than it should have been,” according to the Arkansas Democrat Gazette.
But providers say they are in “desperate need” of more money to survive and provide proper care to residents, according to the media outlet.
Ed Holman, chairman of the Arkansas Residential Assisted Living Association, testified that assisted living communities provide cost savings over nursing homes. He also said that Medicaid cuts in 2018 led to the closure of eight assisted living communities.
“There will always be plenty of business for nursing homes. With the explosion of baby boomers just starting to need long-term care, all of their beds will be full very soon at tremendous cost to the state,” Holman said. “We just want to offer an affordable option for people who do not require 24-hour care, and we want a program to be made available in every corner of the state.”
Rep. Ashley Hudson (D-Little Rock) led a motion to have the DHS study the rates again to determine whether they should be increased for assisted living communities to “be more commensurate with the actual cost of the program.”
