Long-Term Care

AHCA's LTC finance reform plan could save $35 billion, report estimates

Contemporary Long-Term Care Weekly, April 23, 2009

A plan to overhaul long-term care funding could reduce federal long-term care spending by $35 billion, according to a report released by Avalere Health Tuesday.  

The report, which aims to calculate the budgetary effects of a long-term care finance reform plan proposed by the American Health Care Association (AHCA), the National Center for Assisted Living, and the Alliance for Quality Nursing Home Care, was prepared for the three industry groups. The reform plan would replace Medicaid payments with a federal catastrophic long-term care program. The plan also requires most individuals to contribute to a “personal responsibility amount” or spend down their personal assets before becoming eligible for federal benefits.

AHCA’s plan would also make changes to the current Medicare payment structure, reimbursing providers based on patients’ needs instead of the site of care. More care would likely be provided in home health and assisted living settings under the plan, according to the report.

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