Skip to content

New Federal Funding Allows States to Rethink Long-Term Care

In the aftermath of COVID-19, the federal government is committing billions of dollars to states to expand and strengthen services that allow elderly adults and people with disabilities to live and thrive at home.

Lidia Vilorio, a home health aide, gives her patient Martina Negron her medicine and crackers for her tea on May 5, 2021 in Haverstraw, New York. U.S. President Joe Biden has proposed $400 billion over a span of eight years on Medicaid coverage of long-term care such as in-home and community-based services as part of his $2 trillion infrastructure bill, the American Jobs Plan. The plan would cover professional nurses, therapists, and personal care aides, but it also includes family members and friends. (Michael M. Santiago/Getty Images)

In addition to promoting independence, services that allow elderly adults and those with disabilities to remain in their homes and communities have the potential to lower costs and prevent adverse outcomes, research shows.

In the aftermath of a pandemic that wrought devastation within long-term care facilities, the federal government is seeking to rebalance long-term care and injecting billions of dollars into states to expand and strengthen home- and community-based services. 

This infusion of dollars from the feds provides states with an unprecedented opportunity to incentivize care delivery in homes and communities, while shifting away from spending on expensive long-term care settings that have fallen under scrutiny for their safety and quality during COVID-19

As states navigate this new opportunity, ATI Advisory, with support from Arnold Ventures, has released a new resource to help state policymakers guide their decision-making. 

The population of those needing long-term care services is expected to continue growing in the coming years, positioning states to take a greater role in reshaping care in a way that best suits individuals and families while containing excessive spending. 

In an in-depth review of the literature over the past decade, coupled with an analysis of existing approaches, ATI Advisory outlined near-term and longer-term opportunities for states to maximize home- and community-based services and advance integrated care models for people who are dually eligible for Medicare and Medicaid. 

To learn more, read ATI Advisory’s state tip sheet, its full report, and access the research bibliography below.