New Texas Economic Study: Bush Medicare Cuts Undermine State and Local Economic,...

New Texas Economic Study: Bush Medicare Cuts Undermine State and Local
Economic, Jobs Base

Texas Projected to Lose $121 Million in Economic Activity, $53 Million in Lost
Wages, Nearly 1600 Jobs; Texas Health Care Association Says New National,
Texas Polls Show Strong Sentiment Against Federal, State Eldercare Budget Cuts

WASHINGTON,June 6 /PRNewswire-USNewswire/ -- As Congress returned to
Washington this week following its Memorial Day district work period, the
Texas Health Care Association (THCA) released a new analysis finding the Bush
Administration's proposed $770 million Medicare Part A nursing home funding
cuts will not only cost Texas seniors $45.6 million in essential health
benefits, but cause Texas to lose $121 million in total economic activity,
$53.5 million in lost wages, and 1,586 jobs in the year ahead. THCA officials
are in Washington this week lobbying the Texas congressional delegation on
long term care financing and other related issues.

According to the new study, prepared by the American Health Care Association
(AHCA), the following schedule illustrates the direct, indirect and induced
impact of the Administration's pending $45.6 Medicare cut on Texas, scheduled
to go into effect this summer:

Direct Indirect Induced TOTAL

Business Activity
Impact ($) 45,663,875 15,777,192 59,622,818 121,063,885

Income Impacts ($) 27,723,334 5,091,449 20,782,250 53,597,033

Employment Impact
(Jobs) 983 137 466 1,586

Direct Effect represents the impact (e.g. change in employment or revenues)
for the expenditures and/or production values specified as direct final demand
changes.

Indirect Effect represents the impact (e.g. change in employment) caused by
the iteration of industries purchasing from industries resulting from direct
final demand changes.

Induced Effect represents the impacts on all local industries caused by the
expenditures of new household income generated by the direct and indirect
effects of final demand changes.

Total Impact is the sum of the direct, indirect and induced effects.

Labor Income is the sum of employee compensation and proprietary income.

Economic Impact Analysis: Impact Analysis for Planning (IMPLAN) software,
Minnesota IMPLAN Group, Inc., 2006 data.

Copyright, American Health care Association, 2008

"The Bush Administration's proposed Medicare cuts not only threaten Texas
seniors' access to quality care throughout the state, but will also negatively
impact our state's economy and local employment base," stated Tim Graves,
President of THCA. "The Medicare cuts represent a 'lose-lose' proposition
because seniors' care needs will be shortchanged and our state economy and
jobs base will be damaged."

The Texas long term care leader said the Medicare regulations being changed by
the Bush Administration are currently helping facilities throughout Texas
successfully serve higher acuity patients -- at a lower cost than other
settings. "Considering the fact existing Medicare policy is beneficial to both
patients and the taxpayers who finance the program, it is especially curious
this regulatory policy change is being pursued by the President's health care
team," Graves stated. Current policy, he added, saved Medicare $709 million in
2006 alone nationally, according to an independent analysis by Avalere Health,
LLC.

"It is our intent to ensure the Texas congressional delegation is well
informed about the significant damage the Administration's Medicare changes
will incur both to Texas' most vulnerable citizens and to our state and local
economy," Graves concluded.

Graves also observed that new national and Texas polling data show strong
opposition to cutting seniors' long term care funding: earlier this week, the
American Health Care Association (AHCA) released the results of a new national
survey by Zogby International finding 70 percent of likely U.S. voters oppose
the Bush Administration's planned cuts to Medicare-financed nursing home care.
In addition, the poll found, 67% say they are less likely to re-elect their
Member of Congress if he or she voted for the Medicare cuts, which are still
being considered on Capitol Hill. The Zogby International survey of 1,076
likely U.S. voters, conducted 5/15-18, has an error margin of +/- 3%.

Earlier this week in Austin, THCA released a statewide poll of registered
Texas voters by Baselice Associates that found 57% of voters less likely to
vote for their local state legislator if he or she opposed increasing the
amount the state currently pays nursing homes for Medicaid resident care. "We
will ensure voters are not only aware Texas' Medicaid rates are the 49th
lowest in the nation - and fail to pay the daily rate the State itself says is
necessary to care for Texas' oldest, most needy citizens - but also which
lawmakers are helping to ensure this ongoing Medicaid funding crisis is
properly rectified by state government. We are heartened that both nationally
and in Texas, voters oppose budget policies that harm seniors' ongoing access
to quality nursing home care, and jeopardize the jobs of the key frontline
caregivers who make a significant difference in patients' care outcomes." The
Baselice Associates poll of 801 registered Texas voters was conducted
4/30-5/4, and has an error margin of +/- 3.5%.

Founded in 1950, the Texas Health Care Association (THCA) is the largest long
term care association in Texas. THCA represents a broad spectrum of long term
care providers and professionals offering long term, rehabilitative and
specialized health care services. Member facilities, owned by both for-profit
and non-profit entities, include nursing facilities, specialized
rehabilitation facilities, and assisted living facilities.

SOURCE Texas Health Care Association

Tim Graves, +1-512-458-1257, tgraves@txhca.org; or Rebecca Reid,
+1-410-212-3843, rreid@txhca.org; both of Texas Health Care Association