Do Noninstitutional Long-Term Care Services Reduce Medicaid Spending?

Health AffairsPublished 1 January 2009

H. S. Kaye, Mitchell P. LaPlante, Charlene Harrington

DOI10.1377/hlthaff.28.1.262

Source URL

Citations144

SJR quartileQ1

SJR score4.46

SNIP3.04

TL;DR

An analysis of state spending data from 1995 to 2005 shows that for two distinct population groups receiving long-term care services, spending growth was greater for states offering limited noninstitutional services than for states with large, well-establishednoninstitutional programs.

Abstract

Medicaid spending on home and community-based services (HCBS) has grown dramatically in recent years, but little is known about what effect these alternatives to institutional services have on overall long-term care costs. An analysis of state spending data from 1995 to 2005 shows that for two distinct population groups receiving long-term care services, spending growth was greater for states offering limited noninstitutional services than for states with large, well-established noninstitutional programs. Expansion of HCBS appears to entail a short-term increase in spending, followed by a reduction in institutional spending and long-term cost savings.

Keywords

Health ProfessionsEconomics, Econometrics and Finance

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