“Asset Spend-Down and Medicaid Enrollment in Nursing Homes,” by Gabriella Aboulafia, Amanda C. Chen, David C. Grabowski, JAMA Network Open
“Medicaid eligibility for nursing home care is determined in part by an individual’s (or a couples’, if married) financial resources, including income and assets. To qualify, individuals must ‘spend down’ their resources to meet states’ Medicaid eligibility asset thresholds. Little empirical work has examined the rate of Medicaid spend-down in nursing homes over the past 2 decades. … In this cohort study of nursing home residents, those who entered a nursing home as initially non-Medicaid enrolled, especially those with longer stays, were at risk of spending down their assets and enrolling in Medicaid. This finding raises concerns both about individuals impoverishing themselves because of the high cost of care and the long-term financial sustainability of the Medicaid program.”
LTC Comment, Stephen A. Moses, President, Center for Long-Term Care Reform:
This “peer-reviewed” study assumes that transitions to Medicaid LTC mean people had to spend down their wealth for care before becoming eligible. But the reality is very different. As I explain in “Medicaid’s $100 Billion Leak” and “Better LTC for Billions Less,” people can and do qualify for Medicaid LTC benefits while preserving most of their wealth. How can scholars get it so wrong? To make sense of what ails LTC, read 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. To find ample private funds for LTC, check out “Medicaid’s $100+ Billion Leak.” For what not to do, see “Medi-Cal-amity: California’s Reckless Expansion of Medicaid Long-Term Care to the Affluent.” Much more on long-term care here.