PRESS RELEASE
-For Immediate Release-
April 30, 2013

Contact: Brian Gumm, bgumm@foreffectivegov.org, 202-683-4812

Automatic Spending Cuts to Meals on Wheels Program Could Force 39,000 Seniors into Nursing Homes

Reductions under sequestration could cost nation $489 million every year

WASHINGTON, April 30, 2013—In a report released today, the Center for Effective Government finds that sequestration's automatic spending cuts could force tens of thousands of American seniors into nursing homes, increasing Medicaid payments to nursing homes by $489 million each year. Across the country, seniors rely on Meals on Wheels to stay in their homes, but the program is slated for cuts under sequestration.

The Meals on Wheels program will see a $10 million cut in federal funding this year. That reduction translates into 4 million fewer meals delivered to vulnerable senior citizens across the country. As a result, more than 39,000 seniors who qualify for Medicaid could be forced into nursing home care, rather than relying on a combination of home care and Meals on Wheels deliveries. Because nursing home care is far more expensive than home care, this shift in living arrangements would cost the country $489 million per year in increased Medicaid costs.

The report estimates the number of seniors in each state who could be forced into nursing homes because of a reduction in Meals on Wheels funding.

"The Meals on Wheels cut is a particularly stark illustration of the short-sighted and damaging impacts of automatic budget cuts," said Katherine McFate, President and CEO of the Center for Effective Government. "As sequestration continues, other equally ruinous examples are likely to surface like toxic debris after a hurricane."

Ellie Hollander, President and CEO of the Meals On Wheels Association of America, commented, "Funding Meals on Wheels goes beyond just doing the right thing. It's about investing in programs that save taxpayer dollars, reduce federal spending, and support the independence of our seniors. It's a no brainer."

The report is available online at http://www.foreffectivegov.org/sequestration-and-meals-on-wheels. For a comprehensive compilation of articles and reports documenting the impacts of sequestration, see http://www.sequestrationcentral.org.

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