The Role of Managed Care in Home- and Community-Based Services Spending
Author Information
Author(s): Arp Patrick, White Lindsay, Meara Ellen, Ne’eman Ari, Coe Norma
Primary Institution: University of Pennsylvania
Hypothesis
What is the impact of managed care on long-term services and supports spending?
Conclusion
Managed care in Medicaid LTSS programs is associated with lower overall spending, but not in home and community-based services.
Supporting Evidence
- National LTSS spending increased from approximately $410 per capita in 2000 to $570 per capita in 2021.
- HCBS spending more than tripled during the same period.
- Nineteen states introduced managed care into their LTSS programs between 2000 and 2021.
Takeaway
This study looks at how using managed care affects the money spent on services for people who need long-term help, showing that it can save money overall.
Methodology
The study used a difference-in-difference approach analyzing data from Medicaid LTSS reports and think tank reports from 2000 onward.
Limitations
Uncertain fidelity of the data among states implementing managed LTSS programs raises questions about the findings.
Digital Object Identifier (DOI)
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