LeadingAge CEO Explains How Sequestration Will Hurt Aging Services

Posted on: March 1st, 2013 by Sandra Cline

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This message from Larry Minnix, president and CEO of LeadingAge, the national association of nonprofit aging services providers, gives a glimpse of just how harmful sequestration cuts are for those providers and the people they serve:

Why Sequestration Is Dangerous for Aging Services

Sequestration will have the following impact on aging services:

  • A 2% cut to Medicare reimbursement for health care providers. These cuts will amount to an $11 billion cut in Medicare spending (Medicaid is exempt from the cuts).
  • A 5.1% cut in Section 202 housing funding, amounting to $18 million.
  • A 5.1% cut, amounting to $86.7 million, to the Administration on Aging, which manages Older Americans Act programs.
  • Stymied job growth in our field.

There is no denying the seriousness of the federal budget situation and the need for shared sacrifice to address it.

However, aging-services programs already have absorbed many cutbacks over the last few years.

Section 202 funding for this year is less than half of what it was 3 years ago. There has been no new construction money for 2 years.

Medicare reimbursement has been curbed both administratively and under the Affordable Care Act.

Enough is enough.

We need a budget plan that does not impose a disproportionate burden on those least able to sustain cutbacks in health care, housing and long-term services.


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