Wisconsin is now ranked the worst in the country for reimbursing the cost of medical care to nursing homes and other elderly care givers.

Administrators say that's why 17 percent of nursing homes in Wisconsin are currently going into bankruptcy -- and why many more may follow.

We discovered some of the serious challenges facing nursing homes. Nursing homes have faced funding challenges for years. But many administrators say Medicare cuts that went into effect October first -- are making tough times get even worse.

Alvera Held is one of the few here at Fall Creek Valley Care Center who is paying for her stay out of her own pocket -- but that has come at a price. She says, “I am coming to the point that I am spending most of my money and I’ve just put my house on the market to sell -- because I need money to keep on living here.”

Administrator of Valley Care -- Jack Halbleib says because the nursing home isn't getting reimbursed enough for all those on Medicaid – it’s people like Alvera who get stuck with a higher bill -- to the tune of $170 a day.

Halbleib says, “We will look at the potential of increasing our private pay -- those people already paying taxes, already paying Medicare already paying into Medicaid -- but again we'll have to look into increasing their payments and their charges in order to keep us afloat -- because the government is not adequately funding what they are demanding.”

Jim Deignan with Dove Healthcare in Eau Claire says the current system isn't supporting any growth in the health care industry -- he says the way nursing homes are currently being funded -- is a recipe for disaster.

And Halbleib agrees, he says, “One of the things that needs to change is simply an understanding that programs such as Medicaid may not be the best targeted vehicle for paying for long-term care.”

Halbleib says the aging population should look into buying long term care insurance -- instead of the millions currently relying on Medicaid -- which is creating a financial burden for nursing home facilities.

If more people took out this insurance, Halbleib says people like Alvera wouldn't be forced to make tough decisions like selling her home -- she could rest easy knowing her insurance would cover her nursing home costs.