Southern California Nursing Home Abuse Lawyer Blog
At Nursing Home Law Group, we’re committed to protecting the rights of vulnerable seniors. That includes speaking up when proposed changes in federal policy threaten access to the long-term care so many elderly Americans depend on. Right now, a quiet but dangerous proposal in Congress could put essential nursing home care out of reach for people like Owen Allen — and thousands of others across the country.
Owen, a 64-year-old man with muscular dystrophy, lives in a Medicaid-supported nursing home in Georgia. With help from skilled staff, he works to regain his strength through therapy and daily activities. His care, like that of more than 60% of nursing home residents nationwide, is paid for by Medicaid. Without it, he simply wouldn’t be able to stay.
What’s Happening in Congress?
Congress is considering sweeping cuts to Medicaid as part of broader budget negotiations. One major target is something known as the “provider tax” — a mechanism that allows states to collect taxes from health care providers (including nursing homes), then use that money to qualify for additional federal Medicaid funding.
Critics call it a “shell game,” but in reality, it’s one of the few ways states can keep Medicaid-funded long-term care afloat. Nursing homes and elder care advocates argue that eliminating or freezing this system would have devastating consequences. Many nonprofit facilities already operate at a loss when caring for Medicaid residents, receiving only 82 cents for every dollar spent on care.
The Real-Life Impact
Cuts to Medicaid funding or changes to the provider tax structure could force facilities to reduce services, turn away low-income residents, or shut down entirely. That means fewer beds, fewer caregivers, and fewer options for seniors — especially in rural or underfunded communities.
Already, between 2011 and 2021, more than 1,400 nursing homes have closed, and more closures could follow if federal funding is gutted. Nonprofit homes like A.G. Rhodes in Georgia say they may have to eliminate services like music therapy or community outings. Others may no longer accept residents who rely on Medicaid at all.
It’s Not Just Nursing Homes
Medicaid also supports home-based and community-based care alternatives, allowing seniors to remain in smaller group homes or their own residences with visiting caregivers. These models are often more affordable and more dignified — and they’re at risk, too.
In Georgia, for example, personal-care homes provide shared, family-style housing to seniors on Medicaid. Residents like 80-year-old Grace O’Neal — a former EMT who lives independently but safely thanks to Medicaid support — may have nowhere to go if funding is slashed.
Why This Matters
Some lawmakers argue that public funds shouldn’t be the default for elder care. But that ignores a crucial truth: most Medicaid recipients worked their entire lives. They paid into the system. Now, in retirement, they need help. The suggestion that long-term care is a handout — rather than a promise society has made to its aging members — is deeply flawed.
As elder law attorneys, we see the human toll of neglect and underfunded care every day. We know that when facilities are under financial stress, it’s residents who suffer. Reduced staffing levels, unsafe conditions, and denied admissions are the legal issues we litigate — and these proposals could make them worse.
What Can You Do?
Stay informed. Contact your local representatives. And if you or a loved one are facing unsafe conditions in a nursing home or have been denied proper care due to financial policies, we’re here to help.
At Nursing Home Law Group, we advocate fiercely for the dignity, safety, and well-being of seniors. Medicaid may be complex, but your rights are not. No one should be left behind because of budget cuts or politics.
Need help? Reach out today for a free consultation. Let’s protect our most vulnerable — together.
