Brief The Adequacy of Income Allowances for Medicaid Home and Community-Based Services
Richard W. Johnson, Stephan Lindner
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Medicaid finances home and community-based services (HCBS) for lower-income older adults with disabilities, but most states require beneficiaries to contribute toward the cost of their care. States permit HCBS beneficiaries to retain some income to cover living expenses, but these income allowances are sometimes too low to support independent living. We found that 48 percent of older households with incomes below four times the federal poverty level spend more than their state’s Medicaid HCBS income allowances, and 29 percent spend at least 50 percent more than the allowances, potentially limiting program access and forcing some older adults into nursing homes.
Research Areas Health and health care Wealth and financial well-being Aging and retirement Taxes and budgets
Tags Economic well-being Long-term services and support Retirement State and local tax issues Retirement policy
Policy Centers Income and Benefits Policy Center