At $1.6 Million Per Person Annually, Medicaid Spending Draws Scrutiny

[The Straight Story]

At $1.6 Million Per Person Annually, Medicaid Spending Draws Scrutiny

Federal officials are asking New York to do some explaining after a newspaper reported that Medicaid is spending $4,556 per person daily to support residents of nine state institutions.

In a letter sent to state health officials earlier this week, the Centers for Medicare & Medicaid Services is asking New York to provide details about reimbursement rates at the facilities. At $1.6 million per year for each of 1,400 residents, the rates charged are estimated to be the highest in the nation.

The federal government matches state contributions to Medicaid spending, so half of the money spent is coming from Washington.

New York officials are being asked to justify how they establish the high rates and provide breakdowns for spending at each institution.

When asked about spending last month, state officials said not all of the money goes to individuals living in institutions even though that is how it’s reported. Rather, some of the funds are used to support other programs for residents with disabilities, reports the Poughkeepsie (N.Y.) Journal.

http://www.disabilityscoop.com/2010/07/16/ny-institutions/9375/

[aquart]

1. That does seem a trifle excessive.

Regulation without regular inspection and rigid enforcement is useless.

[jwirr]

2. Back in early 1990s the average cost of a person in a MN institution

was about a 1/4 of a mill. I know this because we were bringing our country residents home and as an advocate I used the number to ask why we did not spend that amount at home instead of another county. We brought the last four residents home that year.

I love the union but one of the big reasons why institutions often cost more is because they are unionized and the level of education a worker has is controlled by the state. Thus the higher cost of care. It is also the reason that our state started moving as many clients as we could into smaller (4-6 bed) foster homes.

Even so 1.6 mill does sound like a lot of money because not all those in institutions need full care. Some should cost less than others.

[foxfeet]

3. I realize the headline isn't that of the OP,

but it gives the impression that the entire Medicaid program, not just in one state, is spending at the rate of $1.6 million per person, annually.

[LostinVA]

5. Agreed n/t

[burnsei sensei]

4. Sounds like medicine for profit.

nt

[sixmile]

6. K&R

How does a thread like this have no discussion?

[SocialistLez]

7. I hope they get to the bottom of it.

That doesn't sound right though.

I personally thought there was a limit how much money is spent on people on Medicaid.
I guess that varies state by state.

:shrug: :shrug:

[Festivito]

8. Hey! I'd be glad to take care of someone for $4,000 a day. A bargain!

I bet a doctor would too. One person, a million dollar salary. Let's go!