Wednesday, November 12, 2008

Rationing Nursing Home Beds 

Categories:  Long-term care, South Dakota

One common criticism of government-funded health care is that it leads to rationing. Want to see that in action? Look at the situation with nursing home beds.

South Dakota already ranks #7 in the country in its percentage of population over 65, and that population is expected to grow by twice the national rate over the next 17 years. That has some people in the state worried.

Medicaid pays the bulk of nursing home expenses, which means that the state will be on the hook for millions more in spending.

Aside from paying for it, there's the problem of finding beds for people who will need them. South Dakota law puts a quota on the number of nursing home beds. As you might expect in any situation where supply and demand are determined by government, not freely interacting individuals, there's a mismatch. The Argus Leader says "As the population has shifted, some nursing homes in rural areas have been left with more beds than their demographics dictate."

On a positive note, a state report does recommend looking at ways to encourage people to buy long-term care insurance, so the burden of care doesn't fall on taxpayers.



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