During a recent visit with a Senator I was asked the question, “Why don’t more assisted living providers accept ALTC residents?”. I explained that although providers do accept ALTCS it is not as prevalent in AL as it is in Nursing Homes. I offered that with the recent provider rate cuts it is proving more challenging for AL Providers to continue to accept ALTCS. Providers currently accept a much lower rate for the services they provide, and additional rate reductions continue to remain a possibility. This discourages providers from continuing to accept ALTCS.
The continued cuts to ALTCS rates in AL will end up costing the state money, not saving them money. I know this sounds counter intuitive, however for every resident that does not move into Assisted Living, one does move into a Nursing Home. Nursing Homes receive a rate of $100 -$150 per resident day versus the $60 - $90 for assisted living. The argument for not reducing nursing home rates and pushing seniors to live in nursing homes is this: the state receives a match of $3 dollars for every $1 the state spends. However, the state has received the same FMAP for assisted living.
In the end, the State of Arizona pays a higher rate to be in a nursing home. . . . . . . so people have to ask themselves . . . . . .where is the savings?
