AARP: demographic trends support home care

ARLINGTON, Va., Sept. 12, 2012—AAHomecare reports that AARP has found demographic trends pointing to the growing importance of home-based care in its recently published annual state-by-state guide Across the States 2012: Profiles of Long-Term Services and Supports. Long-term services and supports (LTSS) encompass a range of care typically delivered in the home or community, such as personal care for help with daily activities and adult day services at a senior center. The report points to several trends that underscore the importance of home care and HME:

• The age 85 and older population—the group most likely to need LTSS—is quickly growing. The 85-plus population is likely to grow by 69 percent over the next two decades and more than triple between now and 2050.
• Many older Americans who have moderate or low incomes are likely to qualify for need-based LTSS and other publicly funded services.
• Family caregivers provide care that has a value of $450 billion (2009 figure), which is four times greater than Medicaid LTSS spending and more than six times what is paid in private care.
• Most spending for Medicaid LTSS goes to nursing facilities rather than home and community-based services.
• The number of older people and people living with physical disabilities who receive Medicaid-funded home and community-based services has increased, while the number of nursing facility residents has remained constant.
• Medicaid can support approximately three people through home and community-based services for every one person housed in an institution.

Only seven states spent more than 45 percent of their Medicaid LTSS funds on home and community-based care. They are Alaska, California, the District of Columbia, Minnesota, Oregon, New Mexico, Texas and Washington. At the other extreme are six states that spent 15 percent or less on home and community-based care, including Alabama, Delaware, Maryland, North Dakota, Rhode Island and South Dakota. See the full report here.