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Nursing homes sue state over Medicaid payments

LTC Liability Monitor, March 16, 2005

A group of 58 New York nursing homes filed a lawsuit against the state alleging the Medicaid reimbursement system is so meager that it forces them to overcharge private-pay residents to make up the difference, the Rochester Democrat & Chronicle reported. In the suit, the nursing homes argue that the state should increase its Medicaid reimbursement rates-which haven't changed since 1983-to match current economic standards.

The group also cites a study that found Rochester-area nursing homes have the lowest Medicaid reimbursement level in the state. They get 71 cents for every dollar of care they give, as opposed to New York City-area homes that get 94 cents for every dollar, the Democrat & Gazette reported. A similar lawsuit was rejected by a Buffalo, NY-area judge last year. That case is currently in appeal.

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