The Medicaid funded Home Help Program is Michigan’s largest in home services system. Its mission: to help low-income senior citizens and adults living with disabilities with enough stay in their homes. The cuts proposed by the Senate Republicans would slash this program by rolling back hourly wages and reducing services.
There are over 200 Home Care workers and over 220 recipients of the services in Shiawassee. Shiawassee County hourly wages would not be cut under the Republican proposal: at only $7.00/hr, Shiawassee workers are not paid enough to “qualify†for the Republican wage rollback. (nice, huh?) Still, the Shiawassee program faces a minimum 10% cut in services.
According to the Department of Community Health, in 2005, the state spent $762,000 on care services in Shiawassee County. In 2006 that spending increased to about $823,000. Under the Republican plan, Shiawassee faces a minimum wage loss of about $82,296.
Over $82,000 in wages lost from our economy. Can Shiawassee afford that?
But that’s just the wage effect of these cuts. Let’s look at the effect on the recipients of this program.
People who receive home care services often do so because their only other alternative is to enter into a nursing home. When they do this, their own home usually sits empty.
According to a study by the Anderson Economic Group, the total per person cost in lost rental income is approximately $4,302. The total cost per person in declining property values is $498. This does not take into effect the decline in the value of the neighboring property.
Can Shiawassee afford more empty homes? A further decline in property values?
Some of you might think all of this is necessary … Michigan has big problems … maybe you think home care a luxury the state can’t afford?
Actually, Michigan can’t afford not to provide home care. According to the same AEG study, Michigan can save $276 million over the next six years by investing now in home care. Home care is more efficient and costs have actually decreased as demand has increased. Nursing home care is undeniably more expensive:
Since the nursing care home is also Medicaid funded, these cuts to home care will cost Michigan more. By increasing wages and improving the quality of care, the home care program will be more able to meet the increasing demand for care for our seniors.
| The House Fiscal Agency has recently reported that in 2006, Medicaid covered 15% of Michigan’s population, and was using 25% of the Michigan general fund. Can we afford to increase Medicaid spending by putting more of our seniors into nursing homes? | Did you know… … according to the 2000 census, 9.10% of Shiawassee County households consist of a senior citizen living alone. About 7.70% of Shiawassee seniors are below the poverty line. |
Let’s bottom line the Republican Senate cuts to Medicaid:
This is on top of our other cuts — $165,000 in revenue sharing for police and fire, and nearly $500,000 in cuts to Shiawassee schools this year.
Contact State Representative Dick Ball and tell him that Shiawassee cannot afford these cuts: 1-877-558-5426.
More on the web:
Michigan Quality Home Care Campaign
Anderson Economic Group
Republican Cuts Likely to Increase Medicaid Spending
Service Employees International Union
And a whole lot more …




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