Money for community-based services a win-win

As Congress searches for ways to stimulate the economy at the state level, boosting federal Medicaid funding should be at the top of the list.  And the state legislature would be wise to follow suit by preserving the funding for the Medicaid Home and Community Based Services outlined in the Governor’s budget.  Preserving these funds is a win-win for the state.

Montana is aging at a faster rate than most other states — in fact, it’s one of the fastest-aging states in the nation.  Overwhelmingly, most residents want to age in place, ideally in their own homes.

A recent survey of AARP members in Montana showed that 70 percent of respondents ranked remaining in their homes as a top concern, and 75 percent said that helping people age in place should be a top legislative priority.

The findings reflect the struggle of many Montanans to find care they can afford in the setting of their choice.  Medicaid will pay for nursing home care right away, but those seeking alternatives have to get in line: more than 400 residents are currently waiting for home and community-based services. Some can expect to wait for almost a year.

According to an AARP report released in July, Montana allocates 75 percent of its Medicaid long-term care funding to nursing homes, despite a decrease in the number of residents in such facilities and the much higher cost of providing care in an institutional setting.  More state dollars allocated to home and community-based care would provide more choices in our state’s long term care system and help meet our citizens’ demand for these services.

In addition to providing valuable services to our seniors, Medicaid is a powerful economic force in our state. Leading economists and researchers agree that Medicaid cuts harm the economy, and that increased Medicaid funding boosts local economies and can help prevent our economic crisis from getting worse.  That’s because for every dollar Montana cuts in Medicaid funding, the state loses $2.13 in federal matching funds.

The eight percent increase in Medicaid funding to states proposed by Congressional leaders (H.R. 7110), would generate $87,838,056.00 for Montana. That money then flows through the economy, providing jobs, generating tax revenue for both state and local governments and essentially ends up in the pockets of Montanans.

We believe providing health security for Montanans through the Medicaid Home and Community Based Services program is exactly the kind of economic stimulus America needs in this time of crisis.

The state legislature would be wise to leverage any additional federal Medicaid funds as a way to boost Montana’s economy.  At the very least, the Montana legislature should begin to address the growing demand for Home and Community Based Services — as the Governor has — by preserving funding for this program in the state’s budget proposal.