A study published in the January/February 2009 issue of Health Affairs evaluates the rapid growth of Medicaid spending on home and community-based servcies (HCBS) in recent years. The study, entitled, Do Non-institutional Long-Term Care Services Reduce Medicaid Spending?, seeks to determine what effect these alternatives to institutional services have on overall long-term care costs. Expansion of HCBS appears to entail a short-term increase in spending, followed by a reduction in institutional spending and long-term cost savings.
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. To request the full version of the document, please click here.