Quality Mall Product: Taking the Long View: Investing in Medicaid Home and Community-Base...
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Product Information Taking the Long View: Investing in Medicaid Home and Community-Based Services Is Cost-Effective

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The AARP Public Policy Institute publishes a series of briefs called "Insight on the Issues." This issue is one of them.

The fiscal crisis at the time was causing most states to make deep budget cuts. In this climate, many state policymakers were targeting Medicaid Home and Community-Based Services (HCBS) because they are optional Medicaid benefits. However, this approach may have been shortsighted.

Recent evidence was indicating that expanding HCBS could be cost-effective in the long run when combined with efforts that reduce reliance on nursing home care. Moreover, states that shifted their mode of service delivery away from institutional services and toward HCBS could serve more beneficiaries with available dollars.

With declining revenues, states were advised to take the opportunity to focus on longer-term and more cost-effective reform options for their long-term care (LTC) systems, such as promoting HCBS over institutional care. Doing so had the dual benefit of not only slowing the growth in Medicaid LTC spending but also improving consumer choices. (8 pages)

-adapted from www.aarp.org/research/assistance/medicaid/i26_hcbs.html
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