Louisiana Secretary of State Tom Schedler and former Secretary of the Department of Health and Hospitals (DHH) David Hood recently expressed their surprise that the Medicaid Trust Fund for the Elderly has shrunk from $830 million to $410 million under the administration of Gov. Bobby Jindal.
The fund balance is expected to drop to $250 million or less by the end of the current fiscal year (June 30, 2014) and at the present rate of depletion, could be gone in its entirety by the end of Jindal’s term of office, leaving the next governor with having to close a huge health care financing gap.
Schedler and Hood shouldn’t be surprised. In fact, by now they should expect no less from Jindal who, despite his 2003 campaign promises to the contrary, has consistently dipped into one-time money to pay recurring expenses in an effort to plug gaping deficit holes in the state budget.


The original intent of the fund was to use only the interest and investment earnings to provide a stream of funding to pay for nursing home care and other health care services.
Revenue in the fund was to be used as a source of state matching funds for Medicaid funds to make enhanced payments to local government-owned health care facilities.
In fact, a 2012 constitutional amendment to “prohibit monies in the Medicaid Trust Fund for the Elderly from being used or appropriated for other purposes when adjustments are made to eliminate a state deficit” was approved by voters by a 71 percent to 29 percent margin (1.3 million to 527,000).
The amendment specifically prohibits dollars in the trust fund from being used for anything other than the intended purposes and “not (for) helping to balance the state budget” and “to constitutionally protect a specific fund from being raided to help make up for shortfalls in state revenue,” according to the Council for a Better Louisiana (CABL).
Ironically, CABL took no position on the constitutional amendment prior to the election, calling it “unnecessary.”
But Jindal has consistently worked to cut mental health benefits through closure of Southeast Louisiana Hospital (SELH) in Mandeville, elimination of Early Childhood Supports and Services, vetoing funds for the developmentally disabled and even resorting to using personal email accounts to plot strategy on Medicaid cuts.
About $300 million of the money has been spent to stop cuts to the rates paid to private nursing homes for the care of Medicaid patients, according to DHH Undersecretary Jerry Phillips.
In the current budget year that began July 1, Louisiana nursing homes, which have some 29,000 residents, are slated to receive $893 million in state and federal Medicaid payments with $184 million to come from the elderly trust fund used to attract about $500 million in federal matching funds.
It should come as no surprise that with all the cuts to Medicaid, mental health treatment, early childhood support and funds for the developmentally disabled, Jindal would ensure uninterrupted funding for private nursing homes.
Jindal, after all, has received more than $380,000 in campaign contributions from nursing homes and nursing home owners.
Of that amount, $228,500 came from a single source—Elton Beebe of Ridgeland, Mississippi. Beebe, who owns several Louisiana nursing homes, funneled campaign contributions to Jindal through himself, family members, business associates and 21 nursing homes and corporations controlled by him.
The corporations list P.O. Box 6015 and 6016 or 763 Avery Blvd. North as their address. Beebe himself gave P.O. Box 6015 as the address on two of his contributions of $5,000 each and 763 Avery Blvd. North on another $5,000 contribution.

Elton Beebe’s Ridgeland, MS Headquarters
One company, Magnolia Management, gave the Avery Boulevard address on three contributions totaling $10,000 and 3900 Lakeland Drive, Ste. 400 in Jackson, Mississippi, on two others totaling another $10,000.
The contributions date back to Jindal’s first unsuccessful gubernatorial campaign in 2003.
Each of the corporations shares either a physical address or a post office box in Ridgeland.
The remaining $155,000 in nursing home contributions were made by some three dozen Louisiana facilities besides those owned by Beebe. They were scattered throughout Louisiana.
Following are contributions by Beebe, his wife, a business associate and corporations which gave the same Ridgeland address, with the number of contributions and the years the money was given in parenthesis followed by the aggregate amount:
• E.G. (Elton) Beebe: (3 from 2007 to 2011) $15,000;
• Carol Beebe: (2 in 2010 and 2011);
• Lansing Kolb (1 in 2008) $1,000);
• Louisiana Extended Care Centers: (4 from 2003 to 2009) $17,000;
• Magnolia Properties, Inc.: (4 from 2003 to 2011) $14,500;
• Magnolia Manor Properties: (3 from 2009 to 2012) $7,500;
• Magnolia Management Services of Louisiana: (3 from 2003 to 2010) $12,500;
• Magnolia Management of Louisiana: (2 in 2008 and 2009) $5,000;
• Magnolia Management Corp.: (5 from 2003 to 2011) $20,000;
• Magnolia Health Service of Louisiana: (2 in 2007 and 2008) $7,000;
• Medico, Inc.: (4 from 2003 to 2009) $15,000;
• Administrative Systems, Inc.: (3 from 2007 to 2010) $10,000;
• Provider Professional Services: (3 from 2007 to 2010) $10,000;
• HR Property Investments, LLC: (3 from 2010 to 2012) $10,000;
• Southern Magnolia, LLC: (3 from 2010 to 2012) $10,000;
• Transmed, LLC: (2 in 2011 and 1012) $7,500;
• Lena Heritage, LLC: (3 from 2010 to 2012) $10,000;
• Lake Charles Properties: (1 in 2012) $5,000;
• Extended Care Associates: (4 from 2003 to 2009) $15,000;
• EGB, LLC: (3 in 2010 and 2011) $5,000;
• Account Management Services, Inc.: (1 in 2010) $2,500;
• AGF, LLC: (2 in 2010 and 2011) $5,000;
• Caddo Property, LLC: )2 in 2010 and 2011): $5,000;
• Alexandria Investments, LLC: (3 in 2008 and 2011).
Contributions of $2,500 each were all made by 10 of the corporations and another contributed $3,000, all on the same day: Oct. 4, 2010.
Five corporations also made contributions of $5,000 each and another gave $2,500, all on Oct. 24, 2012, a year after Jindal won re-election to his second term. That $27,500 in contributions feeds speculation that Jindal is building up a campaign war chest for a run at a national office.
Here are the other nursing homes and the amounts contributed to Jindal campaigns:
• Alpine Guest Care of Ruston: $8,000;
• Courtyard Manor Nursing Care of Lafayette: $6,000;
• Golden Age of Welsh; $9,000;
• Golden Age Nursing Center of Jena: $2,000;
• St. Agnes Healthcare of Breaux Bridge: $5,000;
• Booker T. Washington Guest Care of Shreveport: $8,000;
• Ringgold Care Center: $2,000;
• Colonial Oaks Guest Care Center of Bossier City: $8,000;
• The Guest Care Center at Spring Lake, Shreveport: $7,000;
• Pilgrim Manor Guest Care of Bossier City: $8,000;
• St. Martin De Porres Multi-Care Center of Lake Charles: $3,000;
• Norhridge Care Center of Pineville: $2,850;
• Savoy Care Center of Mamou: $5,500;
• Morgan City Health Care Center: $2,500;
• The Woodlands Healthcare Center, Leesville: $3,000;
• Franklin Health Care Center: $2,500;
• Matthews Memorial Health Care Center, Alexandria: $1,000;
• Crescent City Health Care Center, Mandeville: $1,000;
• West Carroll Care Center, Oak Grove: $1,000;
• Pinecrest Healthcare Center, Bernice: $1,000;
• Riverview Care Center, Bossier City: $2,000;
• Basile Care Center: $700;
• Guest House Properties, Winnfield: $7,500;
• The Guest House, Shreveport: $8,000;
• Louisiana Guest House, Alexandria: $1,425;
• West Monroe Guest House: $6,800;
• Rayville Guest House: $500;
• Rosepine Retirement & Rehabilitation Center: $6,450;
• River Oaks Retirement Manor, Lafayette: $6,000;
• De Soto Retirement & Rehabilitation, Mansfield: $4,350;
• Kinder Retirement & Rehabilitation: $4,950;
• Sabine Retirement & Rehabilitation Center, Many: $4,700;
• DeRidder Retirement & Rehabilitation Center; $4,450;
• River Oaks Retirement Manor, Lafayette: $6,000;
• The Retirement Center, White Plains, N.Y.: $3,000;
• The Retirement Center, Baton Rouge: $1,000.
These contributions did not include and separate contributions that may have been made by owners of these nursing homes.
Let’s review:
The Medicaid Trust Fund for the Elderly has been reduced by half since Jindal took office.
Only interest and investment revenue from the Medicaid Trust Fund for the Elderly is supposed to be used to pay for nursing home care and other Medicaid expenses.
More than $300 million of the fund’s principal has been used to keep nursing home Medicaid rates afloat.
Nursing homes and their owners have contributed more than $380,000 to Jindal’s three gubernatorial campaigns.
With Jindal, it always seems to come down to a single precept: follow the money.
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