Governor Hassan and HHS to Implement House Finance Plan to Restore Funds for Rate Increase for Nursing Homes

Press Release

Given the greater information available 10 months into the fiscal year and the efforts of the Department of Health and Human Services (HHS) and the House Finance Committee to identify a viable alternative to address the department's budget challenges, which include legislatively mandated back-of-the-budget cuts and increased caseloads, Governor Maggie Hassan and HHS Commissioner Nicholas Toumpas announced today that the department will restore funds for the rate increase for nursing homes and ensure a balanced budget using the alternative surplus funds identified in the House Finance process on Senate Bill 8.

The plan includes providing nursing homes with an immediate payment totaling $3.9 million representing the total that they would have received through a rate increase for Fiscal Year 2014, while using a larger-than-expected surplus from the Choices for Independence program for 2014 and 2015 to ensure a balanced budget for Fiscal Year 2015.

"In order to ensure a balanced budget for Fiscal Year 2015 as we faced shortfalls in business tax revenues, back-of-the-budget cuts, additional legislatively approved appropriations, and increases in caseloads, we have been forced to make tough decisions and reduce in areas where we would prefer to invest," Governor Hassan said. "Providing a rate increase for nursing homes has always been a worthwhile goal if it could be done responsibly, without leading to cuts elsewhere or risking an unbalanced budget at the Department of Health and Human Services and the State of New Hampshire."

"Given that we are 10 months into the fiscal year, we now have a clearer picture of the Choices for Independence surplus for 2015," Governor Hassan said. "The funds have allowed the House Finance Committee and the Department of Health and Human Services to work together to find a constructive alternative for balancing the department's budget while providing the full funds that our nursing homes would have received with a rate increase following Fiscal Year 2014. I want to thank members of the House Finance Committee for offering a constructive solution that maintains fiscal responsibility and strengthens the health and well-being of our people."

In light of year-to-date shortfalls in business tax and interest and dividends tax revenues, legislatively mandated back-of-the-budget cuts, additional legislatively approved appropriations, and a federal eligibility change that has increased enrollment -- from mostly children -- in traditional Medicaid, Governor Hassan has already taken a number of preemptive steps to ensure a balanced budget, including issuing an Executive Order reducing Executive Branch expenditures by $18 million and putting in place freezes on generally funded out-of-state travel, hiring and equipment.

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