LeadingAge PA sent a letter to members of the Pennsylvania General Assembly on February 24, 2026, requesting a floor of 0.84 for the Budget Adjustment Factor (BAF). Initially designed as a temporary budget tool, the BAF has transformed into a structural mechanism that consistently keeps Medicaid reimbursement rates for nursing homes below sustainable levels. According to current cost report and case-mix data, a 0.84 BAF floor would require approximately $274 million (annualized) in state funding in the Fiscal Year 2026-27 state budget and would help restore some predictability to the rate-setting process to ensure that nursing homes do not face further reductions that could threaten access to care.

We need your help urging legislators to support our proposal, which is a necessary step to avoid further erosion of the long-term care infrastructure that thousands of Pennsylvanians rely on.

IMPORTANT: Under the “Message Body” field of the “Compose Your Message” box on this page, please insert specific examples revealing the need for this investment to reduce the existing Medicaid shortfall and provide much-needed predictability and relief, such as:

• What does the nursing care you receive mean to you?
• An example of how a nursing professional has positively impacted your life.
• What concerns do you have about the future of nursing home care?
• If you are not currently receiving nursing home care but reside in a senior living community, why is it important to you to preserve access to this service setting and ensure Medicaid rates are adequately funded by the state?

If you have any questions, please email govaffairs@leadingagepa.org. Thank you for speaking up to protect and strengthen aging services in PA!