WHY IT MATTERS

Why This Rate Freeze Hurts Seniors

• DHS’s consultants confirmed that the true daily cost of care is $132.33, but they chose to maintain the current rate of $86.73/day.

• This underfunding affects:

  • Staffing and retention

  • Resident programs and activities

  • Access to care for Medicaid seniors

• Without fair rates, providers can’t sustain services, putting community-based living at risk.

• Providers lose up to $1,300 per resident per month under the current rate

• Average staffing costs have risen 22% since 2021

• Since 2016, 12+ communities have closed across the state due to underfunding.

  • Total of 473 AL licensed beds lost

• Currently, 8+ more communities are at risk for closure

  • 565 AL licensed beds are at risk

  • 272+ jobs could be lost