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Elder residents served notice as homes quit taking Medicaid

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By The Associated Press

Sunday, Apr 08, 2007 - 07:06:53 pm CDT

FREMONT, Neb. — Residents in assisted living facilities in three Nebraska cities have been served notice after the company operating the homes decided to no longer take Medicaid.

Officials at Assisted Living Concepts say Medicaid longer covers the costs of caring for the residents.

The change means 26 people at homes in Fremont, Wahoo and Blair need to move out by June 30.

“At this point, the Medicaid program pays less than it costs us to take care of folks,” said Laurie Bebo, president and chief operating officer of Assisted Living Concepts. “Now the private pay folks are subsidizing the Medicaid folks.”

Bebo said people who pay for assisted living care pay 50 percent more than Medicaid residents — about $25 below what it costs to care for a resident each day.

Milwaukee-based Assisted Living Concepts runs 207 facilities in 17 states with 8,300 units. All the facilities nationwide will be affected by the change.

“It was home to me. I knew everybody by first name and I had a lot of friends call on me,” said Wilbert Peters, 87, who lived at the Pathfinder House in Fremont for eight years. “I think it’s a dirty deal.”

Peters moved to another home in Elkhorn, about 20 miles away.

“I didn’t want to move. I liked the staff and I liked the people there,” Peters said. “It was hard to leave.”

Gerontology studies have shown that moving can have negative psychological effects on elder residents who grow to call the facilities home.

Bebo said the company gave as much notice as they could, more than what was legally required.

“At this time, this is what’s in the best interest of my residents and the company,” Bebo said. “We’ll continue to evaluate these kind of programs.”

The Medicaid waiver program keeps people out of expensive nursing homes when they don’t need that level of care, said Kathie Osterman of Nebraska Health and Human Services.

Instead, Medicaid helps pay for additional services at the homes, which helps the government save money, Osterman said.


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dj wrote on April 8, 2007 7:31 pm:
" Well this totally sucks! When are we going to start taking care of our own people!?! The government busts their buns to help out other countries, but yet we have homeless & helpless. And now we want to take care of the illegal immigrants. Charity begins at home. Let's take care of our own, US! "

 That's right wrote on April 8, 2007 9:27 pm:
" It sucks completely. DJ is on the ball. We have wounded soldiers, elderly, and retired military that don't have support and we're giving it away to people that don't deserve it. People that didn't earn it get everything, and those that work their lives away in this country don't get squat! "

 Or maybe planning? wrote on April 8, 2007 10:06 pm:
" Or...instead, how about we PLAN for our retirement rather than expecting the gov't to take care of us? I don't expect a handout, and I'm planning accordingly. Of course, everyone else that isn't planning on it is probably going to force taxes high enough that no matter how much I save it'll all be taken by the gov't to pay for them... Sad situation all around I guess... "

 HC, CA wrote on April 8, 2007 10:37 pm:
" I have to agree with dj, It's sad that our "citizens" are not being cared for, and we still support other countries with our tax dollars as well as those "illegal" in this country. It's time to write your represenative or senator. What is happening our our "America"? I think it is time our government steps up and helps tax paying Americans- especially when we know they are living longer and it should be with respect and diginity to our citizens. "

 Roger wrote on April 9, 2007 12:04 am:
" dj I tried that approach 20 years ago in one of Lincolns bigger Methodist Churches in a Social Meeting one time, and the response from one of the snobs from Lincoln was, oh those type of people are leaches off of us that have and we don't need to take care of our own they need to take care of themselves, I am no longer a member of said church and never ever will be again. They definetly did not read the Bible where it says do unto the least of these and you do it unto me. Well they will get their's unless they ask for forgiveness, but the govt. doesn't care about poor people it only cares about the haves' the have nots can go to ______________ as far as the govt is concerned "

 nurse wrote on April 9, 2007 6:15 am:
" Be aware that Medicaid only pays approximately $1400 per month to these facilities. That includes all room and board, etc. These facilities have been charitble for some time to continue accepting Medicaid Waiver. "

 scott wrote on April 9, 2007 7:07 am:
" Please don't forget that this includes not just elder care, but also services to the people with developmental disabilities, mental health needs, etc. They also live in assisted residential environments and are severely underfunded. "

 ND wrote on April 9, 2007 7:51 am:
" This is ridiculous!!! We all work our butts off to support people that can still work but choose to be on Medicaid and not work (not exactly the same situation) However, maybe if people that are able to work would work and not take advantage of Medicaid there wouldn't be this issue with elderly folks. Maybe the government needs to reevalute the situation for Medicaid and what the requirements are to be funded for that so that elderly people won't have to stress out over these kind of situations!!!! "

 Neighbor wrote on April 9, 2007 8:45 am:
" The cost of health care for seniors is unbelievable. My mother recently was treated for cancer, and even with Medicare (which is no more of a charity than Social Security is), her share of the cost was close to $50,000, which wiped out a large share of her savings. Only the very rich or the very poor can afford health care as seniors. "

 Mary Ann wrote on April 9, 2007 8:50 am:
" My question is -- what will happen when some of the residents in these 3 facilities run out of money and then need to apply for Medicaid. Will they, too, be asked to live. No matter how much money you save, it doesn't last long when you are in an Assisted Living Facility or a nursing home. And . . . we are living longer now. "

 citizen wrote on April 9, 2007 8:51 am:
" I wonder if they will charge less at those homes now that they aren't having to take Medicad people. It is a shame that those eldery are being treated like that. The Shame on you award goes to all who are putting these people out of their home. I think when I am the age when I need help I will move into a hotel. Eating out and paying for a nice room won't cost what it does at a nursing home. Nebraska needs to wake up. You are losing some of your finest. Guess we have to move out to live. "

 Karen wrote on April 9, 2007 8:55 am:
" I have a friend whose daughter is on Medicaid. She choose to have a baby out of wedlock. I didn't get a choice to support her and the baby. That comes out of my taxes. We need to rethink who gets the money. Young people who are able to work shouldn't get it. Being pregnant and a parent is no excuse. They chose to be in that situation. So take care of yourself and your children. "

 What? wrote on April 9, 2007 9:07 am:
" Did you ever think no matter how well you plan, things change. Many folks have planned for retirement and for costs like this, but you can't predict for inflation. Medical costs in this country has skyrocketed faster than inflation and neither savings or insurance will cover everything. My parents saved their whole life and had a sizable retirement fund when they retired, but nursing home costs eat any savings up faster than you can imagine. Have you ever looked into the cost of Long Term Care insurance? If you have the slightest medical problem, the cost increases dramatically to where you can't afford it. Better think twice when you say people don't plan for these situations because the do and still come up short. "

 Lauren wrote on April 9, 2007 9:20 am:
" There is a truth about consequences. In the early 80's, several of us warned that if some cost containment wasn't brought into the healthcare system it would result in dire consequence for our people and the State economy. It is sad that persons feel compelled to demonize the immigrants among us rather than addressing the problem as a greed driven fee for service system that is no longer affordable for an enormous number of our senior citizens and the poor among us. It is time for single payer medicare and medicaid provided health care system with regulated botoom line profit margins that are fair and equitable like many other countries have and where they enjoy a longer life expectancy than we. For the Assisted Living Business and the health care "industry" in general it is what generates the best profit for the bottom line that counts. Serving people and meeting the needs of the most vulnerable among us is of secondary importance if important at all. "

 RD wrote on April 9, 2007 10:38 am:
" I don't agree with the nurse about rates. Medicaid waiver pays as of 1/1/2007 for a rural single occupancy is $2044.00. Room and baord is paid by client of $563. so then the state pays 1481.00. But this does not include A share of cost a client might have. Most Waiver clients have some amount of share of cost. Also the clients paid taxes for years and so should receive something for that. Also YES if you run out of money the AL will make you move. They do not or will not have a contract to accept payment. So I don't think the AL will let them stay for nothing. "

 bd wrote on April 9, 2007 11:18 am:
" You do realize that without Medicare your "friends" baby would likely die by 3 without the proper vaccines & medical treatments? Or "best case" be forced to go to the emergency room for every little cold, injury, etc driving up medical costs more for you. Often times these programs save far more than they cost and are really designed to help people for a few years until they can really support themselves. "

 Right on dj wrote on April 9, 2007 11:47 am:
" dj is right on, let's take care of our own first, starting with the elderly. if you are young and able to work, get off of welfare. "

 Similar to Karen wrote on April 9, 2007 12:05 pm:
" I used to be a manager. One of my employee's was living with her deadbeat boyfriend who was unemployed. They fully intentionally got pregnant. And I swear on everything, two months later she literally quit her job with full benefits to receive medicair/medicaid because they would be better off. I can't make this stuff up, I didnt know whether to laugh or punch a hole in the wall. Fortunately for me, she was an awful employee, but good luck to that child, 2 strikes against it already and a 100 mph curveball on its way. "

 Way to go bd... wrote on April 9, 2007 12:10 pm:
" Keep making excuses for the younger generations to be less and less responsible. It's okay, we'll help them out....I don't think so. "

 You're all right, wrote on April 9, 2007 12:28 pm:
" We need to take care of our own people first, that is the job of the government. We(each person) are part of that goverment and have to give serious thought to taking more and better care of our own parents that cared for us many years ago. Assisted living hasn't been around as long as elderly people. Also, people might have to consider that just because technology is available, does not make it a human right to receive that care. In some places, if you cannot afford it, you don't get the care. I'm sure a great deal of people try to save all their life, but one episode can wipe out that. Assisted living rate is $75.95 per day. This includes room/board/supplies. No medications, doctor visits, or therapy. Also, I would be interested in what the gal quoted in the article takes home in pay, let alone the millions that the corporation nets every year. There are many more thoughts on the balance of this issue, as well how it relates to other governmental areas...it won't go away anytime soon. "

 Laura wrote on April 9, 2007 12:53 pm:
" I don't consider Social Security and Medicare a hand out to the people that have held jobs most of their life. Look at the amount of money taken out of our checks each month. If I put that in savings, I would be very wealthy by now!! "

 OH Yeah.... wrote on April 9, 2007 3:37 pm:
" You aint seen nothing yet! More and more doctors are dropping out of the Medicare system too. Medicare reimburses doctors $20something for an office visit that you and I pay $80 dollars for. This has to break somewhere. You've only seen the tip of the healthcare pricing and reimbursement crisis iceberg. "

 whatever wrote on April 9, 2007 3:46 pm:
" The government and charitable organizations will knock themselves out to take care of illegal aliens, but when it's time to take care of our own citizens they have no time or resources. "

 Greg wrote on April 9, 2007 4:11 pm:
" The message is loud and clear. Do not expect the government to take care of you. A letter went out recently from the governor to individuals in their 40s and 50s notifying them not to count on help from the state regarding long term care costs. The reason is quite simple-with the number of baby boomers aging and counting on help from the state the Medicaid system will bankrupt itself. If you want choice in where you go and not to have Medicaid dictate where you stay be proactive. Either begin saving aggressively for future costs or take out long term care insurance. "

 MY GRANDMOTHER wrote on April 9, 2007 5:19 pm:
" My grandmother is one of the residents being forced to find another place to live. She is 95 years old. She moved there knowing she would have to cash in her bonds and CDs to pay for this. Those were used up last year so she went on Medicaid. It costs $3,000 a month to live there. Her nurses and caseworkers say that a move at her age will be detrimental. The Pathfinder is where all her friends are and after being there eight years she is comfortable. Assisted Living Concepts said it was costing them money to have residents on Medicaid. They are not a poor company. Look up their website. They made quite a bit off my grandmother. She paid $3,000 per month for over 7 years -- a total of approximately $250,000. My grandmother is a wealth of information. She saved three of her children during the flood of '44 in northern Nebraska. She was a devoted wife to my grandfather for over 50 years. It's too bad the owners/employees/shareholders of Assisted Living Concepts will never know my grandmother. She deserves better than this. "

 Conserve wrote on April 9, 2007 7:14 pm:
" I know we have many people who come from other countries and live in the USA but we cant even take care of our own people. So these poorelderly people dont have a place to go who probably paid taxes and worked here there whole lives. When does the govt get the picture. We will support families from all over the world but we cant even take care of our elderly sad sad sad "

 Maggie wrote on April 9, 2007 8:19 pm:
" It's interesting that only three facilities are mentioned; several others are in the state (York, Beatrice and Nebraska City come to mind). Sad to think about the total number of affected folks. The company has obviously forgotten to "respect their elders." "

 Get your facts straight wrote on April 10, 2007 8:57 am:
" Get your facts straight before you go spouting off like you know it all. Medicaid residents of those Assisted Living facilities paid at least $563/month for room and board, some paid more if their income was slightly higher. It is not all a free ride. And, yes, others who run out of money will be asked to leave those facilities. Many who were already sent packing had spent 5-8 years of their "planned ahead" money. And, $75/day is on the very low end of any Assisted Living facility in Nebraska...look closer to $100/day. How long would your "well planned retirement" last at that rate? Remember these are some of the very people who fought in wars so that we could have our freedom. They lived through the toughest of times in the Depression and they knew how to save every penny they could. They use all that savings, sell the farm, spend every penny they have to keep from having to go on assistance. To this generation of elders, being on Medicaid is not something they brag to all their friends about. Thanks to "Big Business" like Assisted Living Concepts, the so-called "age in place" facilities gladly take $3,000 - $4,000/month for just as long as they can ride that gravy train. Then when the funds dry up and the payment goes down because it's from Medicaid, they boot out the long-time resident, just for the almighty dollar! That's exactly what is wrong with this country! We look everywhere around the globe to find someone to take care of, but forget to look right in our own back yards. What should we do with elders who run out of money? There are no icebergs in Nebraska to set them afloat on! "

 KB wrote on April 10, 2007 10:33 am:
" We so fluently want to give the illegals that never paid in social security but turn around and stab the elderly who have done everything they could to save so the greedy corporations and politicians can wipe them into poverty. And your most beloved HAGEL VOTED TO GIVE THE ILLEGALS SOCIAL SECURITY!!!!! My doctors office call is $98.00 and medicare o.k'd $48.79 and paid $39.03 and I had to pay $9.76, but the heart Echo exam was $733.00 and Medicare o.k.'d $361.53 and paid $289.22 & I had to pay $72.31. That was for "NO PROBLEM" and I saw the doctor less than 5 minutes!!! Not bad pay for 5 minutes, do you think???? I get a bit discussed with these doctors having to see you every 6 months and give you every kind of test they can to get the big bucks when your not even sick, just because your grandpa had a heart attack and they can't WAIT until you have one. My HONEST doctor in my former state told me, "ah they just do that to get a regular pay check." I'll guarantee you these doctors ain't livin' in a small house like mine!!!!!! "

 nebraska resident wrote on April 10, 2007 11:26 am:
" My grandma lived to be 96, she passed away last summer...my grandpa had planned so she had money...but he didn't think she would ever live to be that old..he died at 86..she lived in an assisted living apartment complex..if you needed help you got it, if not you lived on your own..as she did.. At the end, my parents had to get her state assistance the cost of her medications, diabetes supplies etc. AND the rent on her apt. were gone. Grandma hated to have to have help, but there was no other choice. I am with dj...we need to take care of the people who paid taxes here all their lives, lived through the depression and grew old, they deserve it and have earned it..they come first or should, NOT another country or people who are here illegally "

 JJ wrote on April 10, 2007 1:24 pm:
" next time your doctor orders a test, refuse it. That is your right and responsibility. If you die because they missed something because you didnt think it was worth while, then your family can sue and make your doctor's malpractice insurance go up another $100k each year which gets placed on the rest of us that see your doctor too. But then, physicians are only in it for the money anyway, I know that they don't like helping people, that would be silly in this society. "

 Citizen wrote on April 11, 2007 12:24 pm:
" This news article is slanted. If the Medicaid rate is $1481 per month and that is only $25 less than the 'actual cost', then how much profit is the Corporation making on the self-pay clients at $3000 per month? These places all limit the number of Medicaid clients they take to around 10% of total residents. So, 1 out of 10 residents may cost them $25 per month in profit. Well, 9 out of 10 earn them $1500 per month. Fair trade? These facilities persuade elderly people to move in and spend their savings on self-pay and promise they will keep them at Medicaid rates after their money runs out. Well, now the Corparte Office wants to replace them with more self-pay residents. Residents will end up dead from the shock of being eviected, or have to go to much more expensive nursing homes - also paid by Medicaid. "

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