SACRAMENTO, Calif. -- As the legislative session in Sacramento comes to a close, lawmakers will consider a bill to require nursing homes to better account for the billions of taxpayer dollars they take in each year.
The State Assembly Committee on Health will hear Senate Bill 650, to require nursing homes to provide detailed financial reports that include transactions with any vendors in which they own more than a 5% interest.
Sen. Henry Stern, D-Los Angeles, sponsored the bill.
"Unless we actually know the nature of these related-party transactions, there's an ability to erect a very insidious shell game," Stern asserted. "Moving money around, and not knowing where it is; that we could be seeing billions of dollars in waste and abuse."
Opponents of the bill said it puts too big a regulatory burden on an industry that's reeling from COVID-19. Rallies in support of the bill, and the care economy in general, take place today in Los Angeles and Oakland.
Blanca Castro, senior manager of advocacy for AARP California, said COVID exposed longstanding problems with short staffing. She noted state data showed more than 110,000 nursing home residents and staff had become infected as of May.
"The time is now to hold to nursing home operators accountable," Castro argued. "Over 9,000 lives were lost; that includes residents and staff."
Arnulfo De La Cruz, executive vice president of Service Employees International Union Local 2015, which represents nursing home staff, said some nursing-home corporations use what he called "accounting tricks" with affiliated companies to extract profits from rent, supplies and more.
"Shining a light on the lack of transparency by some of California's largest nursing-home employers is a fundamental step towards our vision for a long term care system that puts care first, not profit," De La Cruz emphasized.
Tony Chicotel, staff attorney for the nonprofit California Advocates for Nursing Home Reform, said the concerns predate the pandemic.
"Nursing homes know their costs. They know their profits, and the state simply doesn't," Chicotel contended. "This lack of transparency results in the state getting ripped off, paying for the private jets and vacation homes of nursing-home owners, instead of the staff and resources critical for resident well-being."
A recent state auditor's report found from 2006 to 2015, three of the state's biggest nursing-home corporations grew substantially, and their related-party transactions soared, even as deficiencies that caused serious harm or death to residents increased by 35%.
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A new national survey says one in five Americans 50 and older has nothing in savings for retirement.
Wisconsin workers young and old are being urged to take action now, to avoid added financial stress in their later years.
The survey results were issued by AARP this month.
Just affording basic expenses right now is a concern for many. But AARP Wisconsin's Communications Director Jim Flaherty said you don't want to be caught off guard when retirement nears.
He acknowledged that it can be hard for younger adults to plan that far ahead, when they're juggling expenses like student loan debt - or for older individuals managing costly medications, and higher grocery bills.
"A lot of times, because they're just trying to get by and they do have to live paycheck-to-paycheck," said Flaherty. "But this is one way to say, 'Hey, if you can live with a little less from your paycheck every week, that will sure grow.'"
Researchers note that 57 million Americans don't have access to a retirement plan through their work.
Wisconsin has not yet joined the list of states that have created state-operated retirement accounts, where employers and their workers can contribute money each pay period.
Supporters hope the issue is revisited next legislative session.
Flaherty said a combination of individuals being proactive and policymakers easing household budget pressure can hopefully put more people on a path toward a healthy retirement.
He said making progress can deter them from looking elsewhere to spend their golden years.
"Let's have an infrastructure that makes drugs affordable, that makes healthcare affordable, that makes retirement savings something that's part of their plan," said Flaherty. "And that'll keep Wisconsinites here."
And groups like AARP have encouraged Congress to address long-term stability concerns for Social Security, so that younger workers can anticipate full benefits.
Some Republican lawmakers have floated cuts, but senior advocates contend any solutions to make the program stronger should not be tied to deficit talks.
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Oregon is working to address the state's digital divide with hundreds of millions of dollars in funding.
Infrastructure presents the largest challenges for connecting people in Oregon to high-speed broadband internet.
Nick Batz, director of the Oregon Broadband Office, said there are more than 170,000 residencies in the state with no or slow internet access.
"Our goal through the broadband office and with all our stakeholders throughout Oregon is to provide access to all 112,000 unserved locations and as many of the 60,000 underserved locations as we can," Batz explained.
The state has received federal funding from a variety of sources, including nearly $690 million from the Broadband Equity, Access and Deployment program, and more than $150 million from the Capital Projects Fund approved in the American Rescue Plan Act from 2021.
Oregon's Digital Equity Plan has also been approved and along with it, nearly $10 million in funding.
Bandana Shrestha, state director of AARP Oregon, said there was a time when high-speed broadband internet was considered a luxury.
"Now, it's such a big necessity for everyone, including for older adults," Shrestha pointed out. "Because we know that if you don't have connectivity, you're not going to be able to see your doctor when you want to. Telemedicine is not going to be possible."
Batz added his office is working to ensure every Oregonian can get on the internet.
"It is an interesting challenge," Batz observed. "Nothing has been done like this in Oregon's history of trying to get internet access to everybody. So, it's going to be quite the challenge and it's absolutely going to require participation from everybody to make this happen."
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Nursing homes across South Dakota will soon receive a boost in support, as part of the most recent legislative session.
Facilities caring for Medicaid recipients are reimbursed by the state for some of the cost. Reimbursement rates have been calculated based on patient needs, occupancy and funds available in the state budget. Last year, the South Dakota Legislature increased the rate from about 75% to 100%.
House Bill 1167 now allows the Medicaid reimbursement rate to be adjusted annually, to keep up with inflation and other changes.
Erik Nelson, advocacy director for AARP South Dakota, is glad lawmakers are giving nursing homes attention.
"We have seen a number of nursing homes close in recent years," Nelson pointed out. "Financial considerations were a factor in that, along with workforce and some other issues."
Since 2019, 15 nursing homes have closed across the state, with six of the remaining 98 on a federal list of facilities not meeting basic standards of care. In addition to a lack of funding, the average staff turnover rate is 54%.
State lawmakers also approved the use of $5 million in American Rescue Plan Act funding toward expanding telehealth services in facilities including nursing homes, allowing patients to receive some health care services remotely.
Nelson noted telehealth is one way to supply needed support.
"For not only the residents, but the family caregivers that are supporting their loved ones in the nursing homes," Nelson emphasized. "And of course, the staff of the nursing home that's in the community."
Census data show South Dakota's population is aging and by 2030, one-fifth of residents will be older than 65.
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