Wednesday, October 1, 2008

Medicaid LTC Demand Soaring

Categories: Long-term care, Medicaid

Just when you think state and federal budgets couldn't take any more, the trade group America's Health Insurance Plans has issued a report (pdf), "State Medicaid Expenditures for Long-Term Care 2008-2027" that describes the coming waves of Medicaid spending.

It projects that over the next 20 years, governments at all levels will spend $3.7 trillion on long-term care. Of that, $1.6 trillion will come through state government budgets--making it a faster-growing category than

The picture isn't looking any better. We're living longer, which is good, but two of three people who are today 65 or older will at some point need long-term care of some sort. Home and community-based care is growing relative to nursing home care, but it's not exactly a great way of saving money.

The 81-page report has graphs displaying trends in spending on LTC for each state.