Sequester Cuts to Senior Meal Services May Force Nursing Home Moves

| April 24, 2013

Hundreds of low-income seniors in the San Francisco area may lose access to Meals on Wheels services as the Contra Costa branch struggles with sequester-related budget problems, reports the local CBS News, and it could lead to increased nursing home moves. 

Meals on Wheels of Contra Costa says it may have to drop service to 200 seniors. 

Funding is running low for the not-for-profit group, which relies on 800 volunteers to deliver one meal each day to about 1,200 homebound seniors. Not only have donations been reduced, but need has also increased in the wake of the Great Recession, says the CBS article.

On top of that is the “crucial blow” of the federal budget sequestration, which cuts $100,000 from the county Meals on Wheels program’s funding.

“The sequestration was a bridge way too far,” program director Paul Kraintz told CBS News. “We’re always struggling with increased need for services and not enough revenue, but when the federal government hit us for $100,000, it made it so we had to act differently.” 

About 60% of the Contra Costa county program’s approximately $3.5 million annual budget comes from donations from individuals and foundations along with contributions from seniors, according to the article, who pay on a sliding scale ranging from $0 to $5 for the meals. The remaining 40% comes from state, local, and federal governments, and because of the sequester, that funding is being significantly cut. 

Absent the Meals on Wheels service, many seniors may be forced to move into an institutional or community care setting. 

“If people can no longer live independently and safely and healthfully at home, they often end up in much more expensive care,” says Amy Gotwals, senior director of public policy and advocacy for the National Association of Area Agencies on Aging (n4a).

For many, that care will be paid for by Medicaid, which was not subject to sequester-related cuts. Rather than achieving any actual savings, either short or long-term, says Gotwals, cutting funding from programs such as Meals on Wheels essentially results in driving up costs in other areas of the budget.  

Meals on Wheels programs in other locations are also seeing decreases in funding as a direct result of sequestration, and many programs expect diminished ability to maintain service levels to seniors. Only a handful of states already know their funding levels for fiscal year 2013, says Gotwals, with most still uncertain how the sequester cuts will impact senior-related services. 

While some states are relying on “carry-over” money from last year’s budget that may temporarily patch a gap in federal funding, this short-term fix isn’t expected to be sustainable going forward. 

“We strongly believe that if people do lose these servicessuch as a reduction from several meals a week to just a handful—I can’t tell you how quickly that individual may start to lose their independence,” Gotwals says. “Over time, if their health suffers, they may not be able to stay in their homes, which may lead them to a nursing home—which for the average person means they’ll spend down their assets quickly and transition to Medicaid, and will end up costing much more money [to the federal government]. Our concern is that this is what will happen.” 

Written by Alyssa Gerace


Category: Low Income Senior Housing, Senior Care, Senior Housing

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