By Rick Banas of Gardant Management Solutions
On behalf of the nearly 3,500 seniors and adults with physical disabilities that we serve in the 39 affordable assisted living communities that Gardant manages throughout the State of Illinois, we applaud the Illinois House of Representatives.
The communities operate through the Illinois Supportive Living program. Last week, the House voted to approve legislation designed to protect the program, which provides a cost-savings alternative to nursing home care for 10,500 seniors and adults with physical disabilities who need some help to maintain their independence.
As part of the effort to achieve a balanced budget in Illinois, Governor Bruce Rauner’s staff has proposed increasing the requirements needed to qualify for residency in a Supportive Living community. Under the proposal the Determination of Need (DON) score needed to qualify for residency would jump from 29 to 37.
Last week, the Illinois House approved House Bill 2482. The bill mandates that the state maintain the DON score at 29 and includes language protecting the eligibility requirements as the state implements an updated assessment tool in the near future.
We thank the 74 members of the House of Representatives who voted in favor of the legislation. Approval by three-fifths of the 118 members was needed.
We especially thank the six Republicans who broke ranks with the Governor and supported the legislation. They are . . .
Rep. Mark Batinick, who represents the 97th District – home of Heritage Woods of Plainfield.
Rep. Terri Bryant, who represents the 115th District – home of Heritage Woods of Mt. Vernon and Prairie Living at Chautauqua in Carbondale.
Rep. Norine Hammond, who represents the 93rd District – home of Grand Prairie of Macomb.
Rep. Michael Unes, who represents the 91st District – home of John Evans Supportive Living in Pekin.
Rep. Sheri Jesiel, who represents the 61st District, which abuts district in which Heritage Woods of Gurnee is located.
Rep. Michael McAuliffe, who represents the 20th District.
We also especially thank the 15 Democrats that serve Districts that house at least one of our communities for their Yes vote. They are . . .
Rep. Carol Ammons, who represents the 103rd District – home of Prairie Winds of Urbana.
Rep. John Bradley, who represents the 117th District – home of Heritage Woods of Benton and Heritage Woods of McLeansboro.
Rep. Marcus Evans Jr., who represents the 33rd District – home of St. Anthony of Lansing.
Rep. LaShawn Ford, who represents the 8th District – home of Beth Anne Place.
Rep. Jack Franks, who represents the 63rd District – home of Heritage Woods of McHenry.
Rep. Esther Golar, who represents the 6th District – home of Churchview Supportive Living and the soon to be opened New City Supportive Living.
Rep. Jay Hoffman, who represents the 113th District – home of Cambridge House of Swansea.
Rep. Eddie Lee Jackson Sr., who represents the 114th District – home of Cambridge House of O’Fallon.
Rep. Frank Mautino, who represents the 76th District – home of Heritage Woods of Ottawa.
Rep. Rita Mayfield, who represents the 60th District – home of Heritage Woods of Gurnee.
Rep. Emily McAsey, who represents the 85th District – home of Heritage Woods of Bolingbrook.
Rep. Pamela Reeves-Harris, who represents the 10th District – home of Heritage Woods of Chicago.
Rep. Sue Scherer, who represents the 96th District – home of Eagle Ridge of Decatur.
Rep. Elgie Sims Jr., who represents the 34th District – home of Heritage Woods of Manteno.
Rep. Mike Smiddy, who represents the 71st District – home of Heritage Woods of Moline and Heritage Woods of Sterling.
An increase in the DON score from 29 to 37 would be devastating to the more than 140 Supportive Living communities that are located in northern, central and southern Illinois.
The size of the communities was approved by the State and is based in a very large part on the assumption that a DON score of 29 or higher would be used to qualify individuals for residency in the community.
On average, analyses indicate that increasing the DON score to 37 would mean that 40% of the low-income and very low-income adults 65 and older and the adults 22 64 years of age with physical disabilities who are currently living in or who would have been eligible for residency would no longer be able to live in a community.
The most immediate effect would be that more than 2,500 low-income and very low-income seniors and adults with physical disabilities would be forced to move and most likely be left homeless because they would no longer qualify for residency in the Supportive Living community where they currently are living. They also would no longer qualify for residency in a nursing home. They likely would not have the financial resources to afford to live independently and pay for the help and assistance they need to maintain their independence. Not only are they on limited incomes but they were required to spend down any assets they might have had to qualify for financial assistance from Medicaid.
Over a short period of time, the occupancy rates in Supportive Living communities would drop by 25% to 40% because of the loss of these residents.
Supportive Living communities would be unable to survive the impact of the significantly lower occupancy rates. They would not be able to meet their mortgage principal, mortgage interest, mortgage insurance and replacement reserve obligations.
This would result in . . .
Another more than 8,000 seniors and adults with physical disabilities being forced to move out of the Supportive Living community where they currently live because the community lacked the revenue needed to survive. Nearly 4,000 of these individuals would be eligible to move into a nursing home on Medicaid, which would cost the state 48% more than if they lived in a Supportive Living community.
More than 5,000 individuals would lose their jobs, collecting unemployment benefits rather than paying income taxes.
Financing sources, including the Illinois Housing Development Authority and Illinois mortgage companies and banks, having to foreclose on mortgages, many of which range from $10 million to $20 million.
Rather than saving the State of Illinois money, the proposed increase in the Determination of Need score from 29 to 37 likely will end up costing the State more money.
Here is why . . .
Because the State splits the cost for an individual on Medicaid residing in a Supportive Living community evenly with the federal government, the State only benefits from 50% of the savings that are generated. Supportive Living communities, however, will feel 100% of the impact.
The State of Illinois only saves money if Supportive Living communities can survive the significantly lower occupancy rates caused by the increase in the Determination of Need score.
The State loses any savings that potentially can be generated just 1,600 of the more than 4,000 individuals on Medicaid who are living in a Supportive Living community and would have Determination of Need scores high enough to move into a nursing home under the higher DON score requirements were to move into a nursing home.
The cost to the State would more than double if all 4,000 were to move to a nursing home.
Again, we thank the members of the Illinois House for making a smart decision to support the Illinois Supportive Living program by approving House Bill 2482.
We hope Governor Bruce Rauner will do the same and sign the legislation into law.
The consequences of doing otherwise would be devastating.
All affordable assisted living communities managed by Gardant Management Solutions are certified and surveyed by the Illinois Department of Healthcare and Family Services. All assisted living communities are licensed and surveyed by the Illinois Department of Public Health.
“Gardant Management Solutions is the leading provider of assisted living in Illinois and one of the 20 largest providers of assisted living in the United States.”
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