Nursing home struggles with Obamacare

McCOOK, Nebraska -- After mulling over how the Affordable Care Act will affect insurance costs to the facility, Hillcrest Nursing Home Board of Trustees unanimously voted Jan. 28 to shop around for additonal coverage options.

Board vice president Randy Dean outlined potential dilemmas in the mandates under the Affordable Care Act that could affect Hillcrest, including the definition of full time employees as those who work 30 hours and above.This differs from Hillcrest's classification of full time employees, at 38 hours a week.

Hillcrest currently offers insurance to full time as well as to part time employees and under the Affordable Care Act, insurance to part time employees may become too costly for the facility. Trustees discussed cost-effective ways to continue offering insurance to employees.

"What employees are thinking (about insurance) is of utmost important to us. This is a big decision and we are not taking it lightly," said trustee vice president Randy Dean.

The board ultimately voted to direct Hillcrest's insurance broker to get a new quote for insurance costs. They also voted unanimously to switch life insurance and disability benefits to another company, noting customer service problems with the current provider.

The board received an update on Hillcrest's financials as of Jan. 26, that includes:

* total cash on hand: $515,585.64, that includes $286,658 in the sinking fund. This fund is used for payments on the $1 million loan the facility received in 2012

* Total payments estimated to Hillcrest: $183,945.47. These payments are from Medicare, Medicaid, private pay residents and the VA.

* Total bills to be paid: $351,381.54