Published on: 2/2/2020
A Centers for Medicare & Medicaid Services regulation effectively proposing new Medicaid taxes could “lead to a major financial burden” for continuing care retirement communities and residents — and even the closure of skilled nursing units within CCRCs — in 18 states, according to the heads of LeadingAge and the National Continuing Care Residents Association, who sent a letter this week to members of Congress in the potentially affected states.
The Medicaid Fiscal Accountability Regulation would disallow longstanding provider tax exemptions and discounts for some CCRCs, also known as life plan communities, despite the fact that the “vast majority” of residents pay for care in CCRCs out-of-pocket, not using Medicare or Medicaid funds, LeadingAge President and CEO Katie Smith Sloan and NaCCRA President Jim Haynes said.
LeadingAge has identified 18 states that currently exempt CCRCs from the tax program or levy a discounted tax on the communities. (See below.)