A little birdy alerted me to this story- it fits with the theory that drastic cuts actually end up costing us more.
The Michigan Senate’s decision to slash home care funding last week will likely lead to increased Medicaid costs in the long run, based on a recent report by the Anderson Economic Group.
Moving funds away from a program that provides quality long-term care at lower cost than other options does nothing to help solve the state’s structural deficit problem. In fact, it will likely worsen the state’s budget problems as more expensive Medicaid programs must expand to take care of beneficiaries who could be served by Michigan’s Home Help program.
The Michigan Quality Home Care Campaign commissioned Anderson Economic Group to analyze the impact of increasing the wages of home care workers in Michigan. The Anderson Economic Group report found that pay increases for Home Help workers – which the Senate voted to eliminate on March 22 – would save at least $276 million in Medicaid costs over the next six years.
You might remember Patrick Anderson from such hits as "The Mackinac Center & Me" and "I Was Endorsed by the Extreme Right and All I Got Was This Lousy T-Shirt". Hardly your flaming lefty.
Patrick had this to say about cutting home health care-
Patrick Anderson of Anderson Economic Group (AEG) said that the nearly $8 million in proposed cuts to Michigan’s Home Help program will actually end up costing taxpayers millions of dollars more by preventing seniors from staying in their own homes and instead pushing them into more costly nursing facilities.
“Underpaying home care workers is likely to worsen the structural budget deficit because it leads to the substitution of nursing home care that is more expensive for taxpayers. This is not a smart thing to do,” Anderson said of the Senate’s proposed home care cuts. “We should be putting more money into home care – not less.”
Well, Patrick, call up your Republican friends and tell them that, would you, please?
Thanks. Much appreciated.