NAHC Says Bush Budget Cuts Harm Elderly and Disabled

Washington , D.C. -- The National Association for Home Care & Hospice (NAHC) today strongly criticized the Bush Administration's proposed FY 2008 budget cuts to home care and hospice. The Bush plan seeks savings of over $100 billion over five years from cuts in Medicare and Medicaid spending. The proposed budget would freeze inflation adjustments on Medicare home care payments between FY 2008 and FY 2012 and impose a permanent 0.65 percent cut annually thereafter. The budget would also permanently cut the inflation update for hospices by 0.65 percent annually starting in FY 2008.

NAHC said that the proposed freezes and cuts would reduce home care and hospice access for millions of care recipients. By so doing, the move would force many seniors and others with post-acute conditions and physical disabilities to seek care in far more costly and restrictive hospitals, nursing homes and other care facilities. Some in this situation may avoid care altogether, thereby exacerbating their complex medical problems.

"The President just doesn't get it," said NAHC President Val J. Halamandaris. "This is pennywise but pound foolish. America should be investing in home care, not cutting it back. Cutting home care cuts away at the American public's best hope for a widely shared, highly effective national health care solution. Home care costs a fraction of hospital and nursing home stays, allows people to age in place with comfort and dignity in their own communities, improves quality of life and health episode outcomes, and provides a far more humane approach to care delivery for a burgeoning seniors population."

The proposed inflation update freeze for home health care would cut $410 million from provider payments in FY2008 and $9.68 billion over five years. Similarly, a reduction in hospice payments would cut $60 million in FY 2008 and $1.14 billion over five years.

States hardest hit by the Bush Administration's proposed home health care freeze over five years are: Texas, $1.3 billion; Florida, $946.5 million; California, $781.4 million; New York, $567 million; and Illinois, $435.6 million.

About NAHC
The National Association for Home Care & Hospice, the industry's largest, oldest and most respected trade group, represents the interests of nearly 25,000 home care agencies and hospice organizations (including approximately 11,500 Medicare-certified home health and hospice agencies) that annually serve nearly nine million Americans as well as home care aide organizations, nurses and other caregivers and their clients. NAHC members believe that quality home care and hospice, a humane and cost-effective alternative to institutionalization, are the right of all Americans. Home care and hospice reinforce and supplement the care provided by family members and friends and encourage maximum independence of thought and functioning as well as the preservation of human dignity. Visit NAHC on the web at www.nahc.org.