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CT Bill Requires Nursing-Home Transparency in Medicaid Spending

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Wednesday, March 9, 2022   

Legislation in Connecticut's Joint Committee on Aging would require nursing homes to spend at least 90% of Medicaid funding they receive on direct patient care.

Medicaid funding allocated through the state pays for about 74% of nursing-home care in Connecticut. The bill asks nursing-home managers to provide summaries of how they are using Medicaid dollars to support patients, including feeding, bathing and administering medication.

Anna Doroghazi, policy and outreach director for AARP Connecticut, said the goal is accountability, to help understand how funds are disclosed on nursing-home cost reports.

"It's been really difficult for advocates and policymakers to try to parse out, are these fair prices?" Doroghazi explained. "Is this the cost of doing business? And is all of that happening at the expense of resident care?"

The bill received a hearing yesterday in the House Aging Committee. Health-care associations have expressed opposition to similar bills, saying this type of requirement discourages providers from using funds for facilities management, which could drive down the quality of care.

Mairead Painter, Connecticut long-term care ombudsman, pointed out the legislation also allows nursing homes to spend Medicaid funding on direct-care salaries. She said it is crucial for employees experiencing burnout due to the pandemic, and thinks it would also help improve the care residents receive.

"Staff are rushing so much now, they have so much work, that those residents aren't getting that time to have somebody really help them focus on what their best day looks like," Painter observed. "This funding should absolutely support high quality of life and high quality of care."

The state's Medicaid program spent more than $1.3 billion dollars on institutional long-term care, including nursing homes, last year. Nearby states, including Massachusetts, New Jersey and New York have all recently set Medicaid spending requirement for nursing homes.

Disclosure: AARP Connecticut contributes to our fund for reporting on Budget Policy & Priorities, Health Issues, Hunger/Food/Nutrition, and Senior Issues. If you would like to help support news in the public interest, click here.


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