This study describes participation and expenditure trends for residential care services funded by Medicaid waivers and examines variation across programs. Using annual report data from states to the Center for Medicare and Medicaid Services (CMS), the results show that between 1995 and 2002, national Medicaid waiver-funded residential care participants increased almost threefold to 120,000 and expeditures more than quadrupled to $2.3 billion. However, Medicaid waiver program participation and spending varied considerably by state, by target population, and by level of care.

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