Medicaid spending for home- and community-based care soars, report finds - McKnight's Long Term Care News

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Medicaid spending for home- and community-based services (HCBS) skyrocketed by 81.5% between fiscal years 2001 and 2007, according to a report released Tuesday by the National Center for Assisted Living. Meanwhile, spending on nursing homes grew by a modest 9.8% during that time.

Nursing home spending expanded to $46.9 billion in 2007 from $42.7 billion in 2001, while HCBS spending rose to $16.7 billion from $9.2 billion during that period, the study said. The number of people receiving Medicaid coverage for services in licensed assisted living settings increased by 43.7% between 2002 and 2009, the study found. HCBS Medicaid waivers cover services in residential settings in 37 states, while 13 states provide coverage directly through state Medicaid plans. That marks a departure from the past when Medicaid paid only for nursing home care. Medicaid now pays for assisted living care for some 131,000 elderly adults nationwide.

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