Many skilled nursing operators will not like the aspect of repeal and replace that could introduce Medicaid block grants.
The prospect of Medicaid block grants has been lurking in the background for many years, a few decades perhaps. With the new Trump administration now installed, block grants of Medicaid funds to each state seem to be on the front burner as part of the repeal and replace of the ACA. Block grants would be just that, a fixed pool of money from the federal government that each state would decide how to spend on its Medicaid beneficiaries. Many skilled nursing operators have feared that prospect, because they fear they will be the last ones to be paid. And they may be right, even though in many states the existing Medicaid rates still do not fully cover all costs. And with the current demographic reality, states are going to be forced to find other alternatives, whatever they may be. What is clear is that since January 20, it is doubtful that Medicaid will be seeing a lot of new funding, so providers who rely on Medicaid will be on the short end of the stick, again. Average SNF prices have continued to rise. Go figure. But that may come to an end.
