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REPORT: Most Medicaid Spending Now Goes Toward Home Care

July 17, 2015

For the first time ever, the majority of Medicaid expenditures for long-term services and supports (LTSS) went toward home and community-based care (HCBS) in fiscal year 2013, a new federal report (pdf) shows.

A total of $75 billion in federal and state spending went toward HCBS in FY13, according to the report, compared with $71 billion for LTSS provided in institutional settings.

The report, released by the Centers for Medicare & Medicaid Services (CMS) on June 30, shows that HCBS spending increased by 7.6 percent between FY12 and FY13, marking the third consecutive year in which HCBS spending went up.

Meanwhile, spending on institutional LTSS decreased for the third straight year.

Additionally, expenditures for LTSS provided through managed-care organizations increased by 44 percent in FY13.

CMS will hold a webinar on July 31 to discuss the report’s findings. Registration is available online.

— by Matthew Ozga

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