Dec. 7, 2006

FOR IMMEDIATE RELEASE:

Contacts: Lauren Shaham, (202) 508-1219

Statement from Larry Minnix, President & CEO American Association of Homes and Services for the Aging (AAHSA) on the Introduction of H.R. 6408 to Extend Therapy Caps and Prevent Provider Tax Cuts

“We are grateful to Sen. Charles Grassley (R-Iowa), Sen. Max Baucus (D-Mont.), Rep. Bill Thomas (R-Calif.), Rep. Nancy Johnson (R-Conn.) and Speaker of the House Rep. Dennis Hastert (R-Ill.) for working in a bipartisan manner to craft and introduce H.R. 6408. We urge Congress to pass this legislation, which will extend Medicare therapy caps exceptions process through 2007 and prevent cuts in the Medicaid reimbursement system by setting a maximum allowable provider tax rate at 5.5 percent through 2011.

Without an extension of the exceptions process, thousands of seniors recovering from strokes, hip replacements and other serious conditions will need to forgo necessary occupational, speech and physical therapy or find a way to pay for it themselves. The Centers for Medicare and Medicaid Services estimates that 80 percent of seniors who applied for coverage over the $1,740 therapy cap would qualify for it, and that nearly 600,000 beneficiaries would have exceeded it.

Provider tax cuts must be prevented because the resulting sharp reduction in Medicaid funding would remove resources used to enhance nursing care, activities and other services for nursing home residents.

AAHSA is advancing a framework for more rational and effective financing for long-term care that would reduce our reliance on Medicaid. But in the absence of current alternatives, it is essential to keep Medicaid reimbursement stable to ensure quality for our nation's nursing home residents.

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About AAHSA
The members of the American Association of Homes and Services for the Aging (www.aahsa.org) help millions of individuals and their families every day through mission-driven, not-for-profit organizations dedicated to providing the services that people need, when they need them, in the place they call home. Our 5,800 member organizations, many of which have served their communities for generations, offer the continuum of aging services: adult day services, home health, community services, senior housing, assisted living residences, continuing care retirement communities and nursing homes. AAHSA’s commitment is to create the future of aging services through quality people can trust.