Sanders blocks Medicaid Assisted Living rate increase, puts strain on facilities across the state

Staff, administrators and residents at numerous assisted living facilities across Arkansas are wondering what the future holds for them, as they face the loss of promised Medicaid reimbursement rate increases that were approved by state legislators in 2022 but then halted by the current administration.

Soon after taking the oath of office in January 2023,, Arkansas Gov. Sarah Huckabee Sanders decided to delay an increase to the Medicaid Assisted Living rate that had been established by the Arkansas Legislature during the 94th General Assembly and approved by then-gov. Asa Hutchinson just before his exit from the governor’s seat.

Assisted living reimbursement rates rose during the height of the COVID-19 panic—urban providers received $81.58 per day, and rural providers received $85.67 per day—but that temporary supplement is now expired. Assisted living providers and patrons were expecting to see a rate increase to $96.76 per day at the start of 2023, up from the previous regular rate of $67 per day, but Sanders’ decision put the brakes on that planned increase.

Prices have soared all across the board since early 2020, and just as individuals have felt the strain of increased prices, so have assisted living facilities across the state. The upward trend in expense growth shows no sign of plateauing, so providers already stretched thin are facing dire circumstances.

“The Governor’s action put all Medicaid Assisted Living providers in a financial crisis. As a result, many Assisted Living providers will be forced to cease operations,” as stated in a letter from Healthmark Services, Inc, sent to parties affected by the news. “”These closures mean that assisted living residents may be displaced or be forced to find alternative living arrangements. Individuals with a Medicaid waiver are not eligible for a higher level of care.”

The threat of closure is faint for many facilities, but the letter states that six facilities in Arkansas are facing the possibility of closure within 60 days. The Crossing in Malvern, a Healthmark Services property, is not on that list, as of yet. But Director Jennifer Harmon says the mere thought is very frightening and stressful for many of the residents.

“And it’s not just the residents, it’s also the staff,” Harmon said, pointing out that a closure would not only disrupt the lives of residents and their families. Employees could find themselves abruptly out of work and left to start the dreaded job-search process all over again, which could greatly impact them and their own households.

Harmon said the Malvern facility has dealt with the rising costs of food, gas, supplies and salaries as best they can, but they were counting on that rate increase to combat the growing financial strain. She hopes the current state administration will reconsider the move to cancel the rate increase, but no mat

ter what the case may be, The Crossing will continue to provide the best care possible for its residents, and the best working environment and essential support for its staff.

“We just want to do the very best thing for our residents,” she said, adding that assisted living facilities play a vital role in the community and are essential options for people who don’t qualify or can’t afford other types of residential care, like nursing homes or in-home healthcare assistance.

Sanders’ decision to halt the increase is a hard pill to swallow for people like HSC Judge Dennis Thornton, whose mother has happily called The Crossing “home” for some time.

“The elderly are one of our most treasured and vulnerable resources here in Hot Spring County. We certainly have an obligation to protect their rights and peace of mind,” Thornton stated. “Due to budget concerns when Arkansas has over a billion dollar surplus, assisted living facilities are being targeted and face shutdowns.

Thornton said that after speaking with some of the residents at The Crossing, he knows that many are consumed with fears for the future.

“Plus, they are concerned about those who work there and assist them daily,” he said. “What a cruel place to put our elderly in right here in the Christmas season. What will they do? Where will they go? if the Medicaid Assisted Living rate is not re-instated many will be forced to go to much more expensive nursing homes. Some will have no options.”

Thornton doesn’t want HSC residents like his mother to worry about being uprooted from a place they now call home, away from the friends they’ve made among the other residents and the staff, when they should be enjoying their twilight years in peace and comfort.

“Certainly, this is not something that should be on their minds during this holiday season! This error should be corrected right away,” he stated.

It is difficult for assisted living providers to know where to turn next or how best to proceed, but most are urging the public to appeal to the following state legislators as soon as possible and ask them to adopt the rate increase legislation that was already voted on and approved: Governor Sarah Sanders— 500 Woodbine St., Suite 250

Little Rock, AR 72201 501-682-2345 Senator John Boozman— 555 Dirksen Senate Office Building Washington, D.C. 20510 202-224-4843 Senator Tom Cotton— 326 Russell Senate Office Building Washington, D.C. 20510 202-224-2353