LeadingAge PA Expresses Gratitude to State Lawmakers for Increasing Rates to Address Access to Aging Services Care Crisis

MECHANICSBURG, Pa. (July 12, 2024) — A significant achievement for Pennsylvania’s aging services sector, as state lawmakers and Governor Shapiro passed a budget that includes a 7% increase in Medicaid base rates for nursing homes and a nearly 8.5% increase in Medicaid rates for LIFE providers in the 2024-25 state budget. This will result in over $120 million annual state investment in nursing homes and a $15 million annual state investment in the Living Independence for the Elderly (LIFE) program. For months, LeadingAge PA, along with its members, has worked tirelessly with lawmakers from both parties and the Shapiro administration to secure this agreement and today commends them for their support.

The urgency of this funding was underscored by the closure of 27 nursing facilities and the decertification of 2,588 beds in recent years, with thousands more that are currently certified but out of use due to the insufficient workforce and reimbursement rates — in a state where the need is growing and more than 2.2 million residents are already aged 65 and over. This financial boost will help fund the increased nursing home staffing requirements that went into effect on July 1, 2024, and the funding gap caused by historical underfunding in Medicaid reimbursement rates.

In addition, the funding victory for the LIFE program is a substantial milestone, especially considering that it has not received a meaningful increase in funding since 2008. This support is vital for ensuring the program's ongoing sustainability and the well-being of its participants. With this funding, the program is better equipped to continue providing quality care while stakeholders and the Pennsylvania Department of Human Services work toward establishing a more equitable rate-setting process for the program.

"The advocacy efforts of LeadingAge PA and its members undoubtedly helped make this increase in funding for aging services a reality," said LeadingAge PA President and CEO Garry Pezzano. "We thank the Pennsylvania General Assembly and the Shapiro administration for their leadership, for hearing us and for recognizing the urgent need for funding to maintain access to the high-quality care that older adults in Pennsylvania deserve.

“We are especially grateful to Senator Joe Pittman, Representative Matthew Bradford, Senator Scott Martin, Representative Jordan Harris, Senator Judy Ward, Representative Maureen Madden, Senator Jay Costa and others for their unwavering support during this budget season," Pezzano said. "Although these are not definitive solutions, we are making advancements in the right direction. Moving forward, LeadingAge PA is committed to working closely with policymakers and stakeholders to make sure that the voices of our dedicated aging services providers are heard and that advocacy efforts stay persistent.”

LeadingAge PA is a trade association representing 400+ high-quality senior housing, health care, and community services across the Commonwealth. These providers serve more than 75,000 older Pennsylvanians and employ over 50,000 dedicated caregivers on a daily basis. Services our members offer include Life Plan Communities/Continuing Care Retirement Communities, skilled nursing communities, assisted living residences, personal care homes, LIFE providers, and affordable senior housing. LeadingAge PA advocates on behalf of our members at the state and local levels to influence positive change and affect a healthy vision for the delivery of quality, affordable and ethical care for Pennsylvania’s seniors. For more information, visit www.LeadingAgePA.org.