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Leave it to Texans

Diverting Medicaid funds from nursing homes is the way to go

By Barbara McKee / Tribune Columnist
April 12, 2005

Barbara J. McKeeFor the past year, Texas' "Money Follows the Person" bill has been under scrutiny. Steve Gold from The Disability Odyssey recently issued several reports on the results of the program.

Texas passed it in late 2003, enabling people who were placed in nursing homes to end their institutionalization and have the Medicaid "money follows the person" into the community. That is, instead of Medicaid funds paying for nursing home care, Medicaid funds were shifted to community care.

As of Dec. 31, nearly 3,200 people opted to use Texas' Medicaid funds to move from nursing homes and mental health institutions into living arrangements of their choice. Within this group, six people living in the community were more than 100 years old when they moved out of the nursing homes. Another 245 - 8 percent - were between 90 and 100 years old. A total of 65 percent were more than 65 years old, and 35 percent were under 65 years old. 66 percent were females.

Nearly all of them chose to receive Medicaid waiver services to pay for personal care assistants and other in-home support. Forty-three percent chose to live with their families; 32 percent decided to live in "alternative living/residential care"; and 106 resided with other people who were in a Medicaid waiver program, usually in group homes.

Surprisingly, only 20 percent opted to live alone. I thought the number would be higher, but finding reliable in-home care is difficult because of the low wages and lack of health benefits offered by home health agencies.

Nationally there are 1.4 million people living in nursing homes. Of those, 19.5 percent, or 273,859, disabled people have stated they want to live in the community. Years of research have shown that nursing-home costs are much higher than any other living arrangements. But few states have adopted or fully implemented the "Money Follows the Person" act, which could save them thousands, if not millions, of precious Medicaid dollars that are shrinking with every fiscal budget.

"Allowing persons with disabilities to engage in `self-direction' is a high priority for the Bush administration," said Mark McClellan, administrator of the Centers for Medicare and Medicaid Services, the agency that oversees federal health insurance programs. "Self-direction is a proven approach to higher beneficiary satisfaction for the same or lower costs."

Human Health Services in Texas reports high consumer satisfaction with the program, with nursing-home occupancy rates slowly falling.

If every state adopted and fully implemented a "Money Follows the Person" act, nursing home occupancy rates would fall by 20 percent. This would create jobs in the home health and medical equipment/supply industries. It would allow Medicaid monies saved to be moved into existing and new programs. It would give back the right to pursue happiness to those who have been long denied.

It's something that doesn't come by often: a win-win situation.

You can e-mail Barbara J. McKee at chairgrrl@chairgrrl.com. Her column runs on Tuesdays.

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