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May 8, 2001
Illinois Medicaid Rates for Nursing
Homes Are Among the Lowest in the Nation
(CHICAGO) -- The average Medicaid rate paid to Illinois
nursing homes ranks 48th in the nation, with
only two states having a lower rate. According to August
2000 figures, the average daily Medicaid rate for nursing
homes in Illinois is $88.98. Other Midwestern states
have much higher average Medicaid rates, such as Indiana
at $106.28 and Minnesota at $116.79.
Since 1994, Medicaid rates paid to Illinois nursing
homes have increased by 29%. But, operational costs
have increased 51% during the same time period.
With this disparity in Medicaid rates vs. costs, many
Illinois facilities are facing challenges in sustaining
their high levels of quality care provided to our state's
elderly. Already, over 50 Illinois nursing homes have
declared bankruptcy because Medicaid reimbursement has
not kept up with costs.
Nursing home residents require more advanced nursing
care than ever before. Those elderly who are healthy
and independent are discovering more health care options
available to them, including home health and assisted
living. Nowadays, persons entering nursing homes are
more clinically complex, with a multitude of specialized
care requirements. Their needs for more medical attention,
increased nursing care, and advanced treatments have
caused care costs to increase dramatically. Because
of the shortage of nurses and nurse assistants, salaries
and wages have been driving up the cost of care faster
than normal inflation.
With two-thirds of our state's nursing home residents
dependent on Medicaid, it is crucial that the State
provides adequate funding to meet their needs.
Currently, there are two pieces of legislation addressing
the disparity between Medicaid funding vs. costs for
Illinois nursing homes. Senate Bill 608 requires the
State to calculate Medicaid rates based on current costs
and wages, using the 1999 cost reports, and not those
from 1992.
House Bill 3538 also requires using current costs and
wages and, in addition, requires that the Medicaid rate
be based upon current resident assessments, and not
those completed in 1993.
"Senate Bill 608 and House Bill 3538 restore the
Illinois safety net for some of our most frail and vulnerable
citizens," states Terrence Sullivan, executive
director of the Illinois Council on Long Term Care.
The coalition that supports these two pieces of legislation
is made up of the state’s four largest professional
nursing home associations – the Illinois Council on
Long Term Care, Illinois Health Care Association, Life
Services Network of Illinois and the County Nursing
Home Association – as well as the state’s largest nursing
home employee union – the Service Employees International
Union, Local #4. Together they represent more than 54,000
professionals and caregivers serving 73,000 nursing
home residents. The Catholic Conference, Community Bankers
Association and Metro Counties Association also support
these pieces of legislation.
Editor’s note: Original and digital versions
of this chart are available for publication.
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