Texas Braces for Deep Medicaid Cuts

Nursing homes in Texas could be facing Medicaid reimbursement slashes that are almost three times higher than they were anticipating. The cuts outlined in the Texas House of Representatives' budget proposal for fiscal 2012-'13 would lower the reimbursement rate to $80 per day. The current reimbursement is less than $125 per day.

Nursing home operators in Texas contend that they are already losing money at the current reimbursement rate and that further cuts could force non-profits homes out of business. Medicaid reimbursement rates were cut by 1 percent in September, and an additional 2 percent cut will got into effect in February.

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