Medicaid reimbursement cuts push home health care operator — and 300 jobs — out of Nevada

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The website for ADDUS, a company that provides home health care in Nevada. The company has headquarters in Frisco, Texas.

LAS VEGAS (KLAS) — A home health care company is leaving Nevada, and the union representing home health care workers says cuts to Medicaid reimbursement rates are to blame.

Addus Homecare is ending operations in Nevada in 60 days, according to a news release from the Service Employees International Union.

“These latest cuts to Medicaid reimbursement rates mean it will be harder for Nevada consumers to find the home care services they need,” said Brian Shepherd, Chief of Staff at SEIU Local 1107.

The decision by Addus could cost about 300 people their jobs, according to information provided by a union spokesman.

“There are real consequences to real people when they make these cuts in Carson City,” Addus home care worker and SEIU 1107 member Melissa Morales said.

“Addus is going to pull out of Nevada because the rate the state of Nevada pays for home care services is too low,” Morales said. “That means I’m losing my job and my clients will be scrambling to find a new agency to provide the home care services they need. It was already hard to make a living in home care. Now, it’s getting to be impossible.”

“Caregivers are looking for other kinds of work because they can’t afford to live on $10 or $11 an hour,” Morales said.

Addus Chief Strategy Officer Darby Anderson told the union, “The company is exiting the Nevada home care market as the Home and Community Based Services (HCBS) rate structure in Nevada no longer provides for the ability to pay workers a living wage, cover rising benefit costs and provide for the management oversight of service delivery to meet industry standards of practice.”

Shepherd said, “We’ve heard over and over again from consumers and their families that they prefer in-home care over going to a nursing home. With nursing homes stretched to the limit and a major source of concern due to COVID outbreaks, why would the state make it even harder for consumers to get the home care they need and workers to stay in this industry? In a budget and public health crisis, pushing people into high cost nursing homes makes no sense.”

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