Clinton OKs Limits on Nursing Home Evictions

President Clinton signed a bill into law Thursday to protect current nursing home residents from being evicted or forced to move solely because they rely on Medicaid to pay their bills.

“This law closes a legal loophole that allows nursing homes to evict their most vulnerable residents. It puts patients ahead of profits,” said Rep. Michael Bilirakis (R-Fla.), a sponsor of the bipartisan legislation.

Democrats and Republicans were eager to respond to a highly publicized attempt last year by one of the nation’s largest nursing home operators, Vencor Inc., to remove Medicaid patients from some of its homes in several states.

Public criticism and pressure from government regulators caused Vencor to reconsider. But many lawmakers wanted a law that would prevent any such actions by nursing home operators in the future.

The new law would not force nursing homes to accept Medicaid patients. However, homes that choose to stop taking new Medicaid patients would be barred from evicting or transferring those Medicaid patients they already have.

For the first time, homes that choose not to accept Medicaid patients would have to notify any new residents able to pay their own way at first that they might have to move if they eventually run out of money and need to rely on Medicaid.

Most Americans think of Medicaid as providing health insurance to poor families and children. But two-thirds of elderly nursing home patients also count on the program to help pay for their care.

With nursing home costs averaging $40,000 a year, about half of the senior citizens who initially pay their own way must turn to Medicaid within three to five years.

Vencor and nursing home industry groups supported the new law but have asked Congress also to look into the fairness of Medicaid rates, saying inadequate payments are at the root of some problems residents face.