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October 6, 2008




Public Policy Updates

Older American's Act Appropriations Update

NADSA is pleased with the proposed increase in funding to certain programs within the Older Americans Act (OAA). Both Labor-HHS subcommittees from the House and the Senate approved the appropriations. The following figures have been reported for FY09 from the Senate (in thousands): the Supportive Services and Centers will receive $361,348 and the Family Caregiver Support program (which fund adult day programs) will receive $155,000. Overall, the Senate's increase is 4.6 percent. The House's numbers were identical in the Supportive Services and Centers category. Their numbers differed slightly in the Family Caregiver Support: $153,439. The House numbers give OAA programs a 5.6 percent increase. At this time, it appears that there will not be a vote on an appropriations bill this year, so funding would remain at the 2008 level until Congress approves, and the President signs the bill. We believe that there will be a continuing resolution until February 2009, when a new Congress and President will attempt to pass an appropriations bill. It is important to contact your Representatives and Senators on the importance of funding Older American's Act programs.

Congress stops Medicaid Regulations

Congress has put an 18-month hold on six of the seven regulations CMS proposed to take $18 billion in federal funding out of the Medicaid program. Those regulations could have resulted in cuts to services such as adult day and home care. The moratorium on the proposed regulations preserves the rehabilitation option for the eight states that have adult day health funded under the state Medicaid plan. We are also pleased that proposed restrictions on targeted case management, which would have had a negative impact on Money Follows the Person and integrated case management, are included in the moratorium. It is important for us to continue our grassroots efforts with assuring that these regulations are not implemented in April 2009.

Economic Downturn may have negative impact on State Medicaid budgets

The current downturn in the national economy has resulted in many states responding to falling revenues cut their Medicaid programs. Before the current Congress adjourns, NADSA is urging them to pass legislation to provide a temporary increase in federal Medicaid matching funds so that states will not have to cut back on benefits, eligibility, or payments to adult day providers at the same time that unemployment is rising. These provisions could be included in a second economic stimulus package possibly in September. For a federal Medicaid match increase to pass, your legislators need to hear from you that the issue matters to you and your residents and clients.

Legislation could improve coverage for Adult Day Services

The Empowered at Home Act, S. 3327, could increase the number of older adults and people with disabilities that are eligible for Medicaid coverage for adult day services and home care. Just introduced by Sens. Charles Grassley (R-IA) and John Kerry (D-MA), it now needs more cosponsors to move it forward in the Senate. The legislation strengthens the Medicaid home and community-based state plan option under Section 1915(i) waivers by making income eligibility standards the same for Medicaid coverage of home- and community-based services and institutional care (300% of SSI). Limitations on the scope of services allowable under 1915(i) waivers would disappear. A new 1915(k) waiver would concentrate services and funding for individuals who are high risk of institutionalization. The bill also promotes and protects community living with spousal impoverishment protections for home- and community-based services recipients..