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Kaye, H.S., LaPlante, M.P., & Harrington, C. (2009). Do Non-institutional Long-Term Care Services Reduce Medicaid Spending? Health Affairs, 28(1), pp.262-272.

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.

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For subscription information: http://content.healthaffairs.org/cgi/content/full/28/1/262