“Medicaid’s $100+ Billion Leak”


Medicaid’s $100+ Billion Leak,” by Stephen A. Moses, Paragon Health Institute

“Medicaid long-term care (LTC) has a problem: The wealthy access funds intended for the most vulnerable. Half or more of Medicaid’s $217 billion annual LTC budget goes to beneficiaries who could otherwise afford to pay privately. This diverts scarce program resources from the neediest recipients while causing caregiver shortages and worsening access and quality problems for people on the program. LTC has been in the news recently because of President Biden’s nursing home staffing mandates (as explored in a previous Prognosis by Jackson Hammond). Unfortunately, misguided government programs, specifically the current design of Medicaid eligibility, is the root cause of low-quality care. Let’s explore the problem and offer a solution.”

LTC Comment, Stephen A. Moses, President, Center for Long-Term Care Reform:

The purchase of exempt assets to reduce Medicaid spend-down and qualify for publicly financed LTC is probably the biggest and most expensive leak in a deeply flawed system. This article explains why, how, and what to do about it. Feedback is welcome. For more on the broader context of this issue, see the Paragon Health Institute’s “Long-Term Care: The Problem” and “Long-Term Care: The Solution” and watch this “virtual LTC event” featuring age wave visionary Ken Dychtwald and leading LTC researchers.