Medicaid Long-term Care: The Ticking Time Bomb

Given states’ challenging fiscal environment, transforming Medicaid’s long-term care programs is one of the urgent priorities

The convergence of an aging population, growing fiscal pressures and health care reform's mandate for increased access to care will have far-reaching consequences for state-administered Medicaid long-term care (LTC) programs.

Left unattended, states' obligation to their Medicaid LTC enrollees has the potential to debilitate government effectiveness. In addition, the 2010 Patient Protection and Affordable Care Act (PPACA) provides little near-term relief: States must innovate with a sense of urgency to address this priority issue.

"Medicaid Long-term Care: The Ticking Time Bomb," a new paper by the Deloitte Center for Health Solutions, part of Deloitte LLP:

Examines Medicaid expenditures for LTC in both institutional and community-based settings.
Presents scenarios that forecast two likely outcomes: The effect of the aging population's demographic bulge on Medicaid enrollment and the potential increase in Medicaid eligibility due to mandates associated with health care reform.
Provides a selection of innovative programs that may be useful to policy makers as they consider ways to restructure or transform LTC services for their disabled and elderly Medicaid beneficiaries.

At a time when unemployment rates remain high, state tax revenues have decreased and budget deficits have increased, state leaders must look to promising areas where opportunities for cost savings also improve results. Medicaid LTC programs offer significant opportunity for state officials to demonstrate leadership; however, it will require urgent, thoughtful attention and deliberate action.

To read the full report, download the attachment below.