A bill that would create a new funding pathway for continuous home-based skilled nursing care has gained traction in the California Legislature.
In a unanimous decision, the California State Senate Health committee approved Senate Bill 1492, which would make Medicaid reimbursement for private duty nursing eligible for Managed Care Organizations’ provider tax distribution. It moved to the California Senate Appropriations Committee, which planned to discuss it on Monday.
Experts at California Health Policy Strategies, a consulting firm, estimated that the tax investment could save the state up to $175 million annually by reducing hospitalizations. Home care advocates in California praised the bill.
“As it stands now, families are unable to get the care they need at home, which means patients are staying in the hospital unnecessarily and occupying much-needed hospital beds,” Dean Chalios, president and chief executive officer of the California Association for Health Services at Home, said in a statement. “Not only does this significantly impact the state financially, but it is also not in the best interest of our medically fragile patient population.”
CAHSAH also noted that improved Medicaid rates for private duty nursing would help contain costs and improve quality of life for California’s medically complex beneficiaries. Many of these individuals require specialized assistance, including tools like ventilators or tracheostomies, which can be provided effectively and at a relatively low cost through private duty nursing, according to CAHSAH.
But given staffing troubles and reimbursement hardships, many of these patients are forced to receive care from hospitals rather than from inside their homes, CAHSAH noted. The tax pathway would enhance private duty nursing agencies’ ability to care for these patients.
“Patients across California are facing a crisis,” Chalios said. “We urge Governor Newsom and the California Legislature to bring these patients home.”
The state recently expanded its home- and community-based services waiver program to support Medicaid beneficiaries with nonmedical health needs. However, home care patients and providers have called for even greater support as many beneficiaries languish on wait lists.
