Worries grow over what Medicaid cuts would mean for Wisconsin nursing homes
Nursing homes across the state are already struggling with low funding, leaving residents, workers and community members in a state of uncertainty.
In recent years, nursing homes across Wisconsin have been struggling financially. The need for long-term aging care has grown as adults are living longer, and the costs of paying staff have as well, while Medicaid reimbursement rates from the state have remained low. At least 125 nursing homes have been sold since 2016, and in 2023, 148 assisted living communities closed.
Now Republicans in the U.S. House of Representatives may cut federal funding of Medicaid, adding another layer of worry during an already uncertain time for nursing home workers, residents and their families, and the communities where these facilities are located.
Medicaid is a public health program that is jointly funded by the state and federal government. It provides health care to low-income patients and covers a wide range of services, including long-term care.
About 64% of all nursing home residents in Wisconsin receive help from Medicaid, according to the Wisconsin Department of Health Services. Medicaid covers a majority of nursing home costs for most eligible patients, according to Lisa Davidson, the president and CEO of LeadingAge Wisconsin, a group that represents long-term care providers.
The possible cuts to Medicaid could disrupt a lot of nursing home residents’ lives, Davidson said.
“If you were to take away that payer, where would those people go? They would go without care. And when you’re talking about skilled nursing, that is a very high level of medical, and at times, very complex care needs that need to be met. And the best care and the best place for those situations is going to be skilled nursing,” she said. “So if you take away that payer source, then we will see facilities have to fundamentally change, and not in a good way.”
It could interfere not only with their medical care, but also with their personal lives, Davidson said, since some residents have lived in their facilities for years and have built a community of neighbors and friends, and built connections with their caretakers.
“I think residents will be scared. Those that are currently covered by Medicaid right now, I think that they’ll be very scared about, where do they go? What comes next?” Davidson said.
In central Wisconsin, Portage County has been exploring options to sell its nursing home to a private company, because, officials said, it has become too costly for the county to own and operate.
That’s been hard on Alva Clymer’s friend Grace Skibicki, who has lived at the Portage County Health Care Center in Stevens Point for several years since suffering a stroke. Clymer visits her often, bringing her Shamrock Shakes from McDonald’s and homemade muffins.
For years, Clymer said, Skibicki was able to pay for her care at the nursing home herself, using savings she had earned while working as a nurse. But when those funds ran out, she turned to Medicaid.
“Now where’s she going to go?” Clymer said.
Most of the residents at the Portage County Health Care Center are local to Stevens Point, said Clymer, who’s an advocate for keeping the nursing home in the hands of the county. She said everyone in town knows someone who has received care there, and the community is dependent on it. She’s had three family members live at the nursing home, including her mom, who lived there until she died just a few months shy of her 102nd birthday.
“People would come in, they’d recognize her because she’s in her local community,” Clymer said of her mom.
Medicaid cuts would also have a big economic impact on the state, Davidson said. Positions at the nursing homes would likely be cut, putting workers’ livelihoods and the economic stability of their communities at risk. She worries about the hard decisions families might have to make. At the height of the COVID-19 pandemic, Davidson said, they saw many family members quit their jobs and become full-time unpaid caretakers for relatives who had been living in nursing homes.
It would also hit nursing homes hard at a time when they’re already struggling to keep the lights on. She said a lot of nursing homes are trying to find ways to make the most of the space they have and cut costs, but many of the facilities are aging and need updates. She said it’s been hard to plan for the future without knowing what resources might be available long-term.
“Any cuts to the Medicaid program would really, really harm the work that skilled nursing facilities are doing,” Davidson said.
