South Dakota Stands At A Crossroads: Save Our Facilities From Medicaid Ruin
by Billijean Moerman
As proud South Dakotans, we understand the obligation of prioritizing care for others above all else; for our families, our neighbors, and all those in need. Having access to quality healthcare when needed is a standard necessity of this care that we expect for one another. For this reason, it is imperative that I draw attention to our devastatingly overtaxed, primary funding source of Medicaid.
For many years, Prairie Estates Care Center stood as a beacon of love for our elderly in the small farming community of Elk Point. Some of the most gracious and hard-working individuals called Prairie Estates their home and I was the proud administrator who served them. As with most all facilities, Prairie Estates relied on Medicaid funding to reimburse our gracious owners for the care that we provided. For years, our owners fought and went into debt to keep Prairie Estates open. In January 2023, this battle was lost as Medicaid reimbursement rates barely covered a fraction of the costs.
Our state lost the most caring, loving, close-knit facility I have ever seen in my 24 years in long term care. There was nothing more heartbreaking than to hold my residents as they cried for their home, as we were forced to separate them and move them hundreds of miles away. Many of our residents went to school together and knew one another for much of their lives. They deserved to spend their golden years surrounded by their community and loved ones. Instead, they were forced to go to the only facilities that had room for them. Sadly, Prairie Estates Care Center is just one of over a dozen nursing homes and long-term care centers forced to close in recent years across our state. Over the past five years alone, 10 percent of licensed nursing home facilities in South Dakota have closed due to Medicaid underfunding. According to the South Dakota Department of Social Services, 54 percent of nursing home residents across our state depend on Medicaid for care. At the time when our facility was forced to close in 2023, Medicaid reimbursements in our state totaled $62.5 million. It is highly concerning to see lawmakers in Washington consider proposals that would drastically cut our overly overburdened Medicaid budget. Major new cuts to the program, on top of existing underpayments and inflation, would be devastating.
Medicaid is a program built for families. It serves South Dakotans of all ages, including pregnant mothers and 40 percent of the children born in our state. Patients and families who are the most vulnerable— including those with mental health and substance abuse problems, live in rural counties or have developmental disabilities— rely on Medicaid for care. Organizations and centers established to care for these patients often utilize Medicaid funding. A recent analysis from Georgetown University demonstrated that Medicaid is especially important in small towns and rural areas. One fifth of the country lives in these areas, including a large population of our state.
I, like many red-blooded Americans, admire the efforts of President Trump for championing the voiceless and repeatedly stating he will not cut Medicaid. I support our government in finding greater efficiencies and thank the President and Congress for preserving essential programs like Medicaid as part of this initiative. Trust me when I say that nursing facilities need every penny they make, and Medicaid is crucial in this regard.
So please, don’t wait until your small-town nursing home closes. Don’t wait until you need a compassionate caring environment for your mom or dad and find that they no longer exist. I am speaking for thousands of elderly, but our voices are not strong enough.
Hansen is a Dell Rapids lawyer. During his 10 years in the South Dakota House of Representatives, here’s what he has focused on: