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Iowa Legal News | Cedar Rapids Lawsuit News

Eastern Iowa Nursing Homes Getting Reimbursed by Medicaid for Legal Fees


Posted on Jul 25, 2011

A recent article revealed that Medicaid reimburses Iowa nursing homes and assisted living centers for some of their legal fees. For example, when a nursing home hires an attorney to represent them in fighting Iowa nursing home abuse claims, Iowans end up footing the tax bill.

An investigation into Eastern Iowa nursing homes showed that in 2010 Medicaid reimbursed them over $2.2 million in accounting and legal fees and professional services. Many residents and family members of seniors living in these Iowa nursing homes or assisted living centers are concerned that Medicaid still reimburses these facilities even if they lose their lawsuits.

Medicaid views legal fees as an allowable cost for a nursing home's per-bed, per-day reimbursement. They even reimburse these homes for association dues, which means that Iowans' taxes could help pay for salaries.

The Department of Human Service (DHS) put together a proposal to revise the Iowa code section that deals with reimbursing legal fees to nursing homes. The law would ban reimbursing a nursing home their legal fees if they lose a criminal or state civil action suit, or if the state suspends or revokes their license.

Although these changes have not taken place at this time, the DHS is still considering these revisions to the law.

If you suspect that your parent or loved one is a victim or nursing home abuse or neglect in Iowa, please call the Law Offices of Brady & O'Shea to talk with a skilled Cedar Rapids nursing home abuse lawyer today at (319) 866-9277.

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