Elder Voice Setbacks
- Kris Sundberg
- Jun 27
- 2 min read
Looming projected budget deficits for the State of Minnesota prompted lawmakers to make significant budget cuts across the board. Approximately $427 million in cuts are slated for long-term care and disability programs. Older adults heavily depend on these services to remain in their homes or communities. These reductions may result in longer waitlists, lower quality of care, or forced moves to institutional settings.
Nursing Home Funding Reductions
Inflation Adjustment Cap
An annual cap of 4% on inflation adjustments for nursing home operational expenses could hinder facilities' ability to keep pace with rising costs.
Reimbursement Rate Reductions
Lower-quality nursing facilities will see reduced reimbursement rates, alongside tightened criteria for quality bonuses, potentially affecting their financial stability.
Overall Funding Cuts
Significant reductions in payments to nursing homes are included in the bill, which may impact the quality and availability of care for residents.
Disability Waiver and Long-Term Services Cuts
Disability Waiver Expenditure Reductions
A 2% lead agency residential share is being implemented, reducing expected disability waiver expenditures and potentially affecting services for older adults with disabilities.
HCBS Employee Scholarship and Loan Forgiveness Program Cuts
Reduced funding for the Home and Community-Based Services (HCBS) employee scholarship and loan forgiveness program may impact workforce development in long-term care settings.
Inflation Delays
Provision
Delays or caps on inflation-based rate adjustments for providers.
Impact
Rising operational costs may force providers to cut services, reduce staff, or exit the market, particularly affecting older Minnesotans who rely on consistent care providers.
Waivered Service Cuts
Provision
Rate cuts and modifications to waiver programs (e.g., Elderly Waiver) will reduce funding flexibility and service availability.
Impact
Waivered services are crucial for older adults to avoid nursing home placement. Reduced support could lead to unmet needs and unsafe living conditions.
Waiver Reimagine Needs-Based Budgets
We supported language that would have directed Waiver Reimagine budgets to be need-based rather than location-based, but this language was not ultimately included in the final bill. It seems likely this was due to DHS technical assistance during closed door negotiations leading up to the special session. We will stay engaged with legislators and agency officials over the interim to better understand this outcome.
Protections
Elder Voice Advocates plans to be actively engaged in discussions with the Long-Term Care Imperative on a number of issues were put aside this session, including electronic monitoring, retaliation, Private Right of Action, Health Care Directive, medication, and arbitration.
Why Your Donations Matter
Foundations like the Bush Foundation generously support our work to increase transparency, improve care, and empower communities through initiatives such as Elder Care IQ. However, due to legal restrictions, foundation grants cannot be used to fund our lobbying efforts.
Lobbying is a critical part of our advocacy—it's how we drive legislative change, protect the rights of older adults and people with disabilities, and push for reforms that hold providers and government accountable. To sustain this vital work, we rely entirely on individual donations from supporters like you.
Your contribution directly powers our policy advocacy and gives voice to those too often unheard. Thank you for standing with us.
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