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The Effects of Cash and Counseling on Medicaid Costs

The Effects of Cash and Counseling on Medicaid Costs. Randall Brown Stacy Dale Academy Health Annual Meetings June 26, 2005. How Are Medicaid Costs Affected?. Personal care costs Other Medicaid costs Total Medicaid costs For 1 st and 2 nd years in study.

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The Effects of Cash and Counseling on Medicaid Costs

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  1. The Effects of Cash and Counseling on Medicaid Costs Randall Brown Stacy Dale Academy Health Annual Meetings June 26, 2005

  2. How Are Medicaid Costs Affected? • Personal care costs • Other Medicaid costs • Total Medicaid costs • For 1st and 2nd years in study

  3. Control Group Means, Annual Cost

  4. Effects on Medicaid PCS/HCBS Expenditures—Year 1 **Significantly different from zero at .01 level.

  5. Percent Receiving Any PCS/HCBS —Year 1 **Significantly different from zero at .01 level.

  6. Cost of PCS/HCBS per Recipient Month—Year 1 **Significantly different from zero at .01 level.

  7. Ratio of Actual to Expected PCS/HCBS Cost—(Month 12)

  8. Effects on non-PCS Medicaid Expenditures—Year 1 *Significantly different from zero at .05 level.

  9. Effects on Total Medicaid Expenditures—Year 1 **Significantly different from zero at .01 level.

  10. Effect on Total Medicaid Costs—Year 1 vs. Year 2 **Significantly different from zero at .01 level.

  11. Lessons • Program increases access to paid care, which increases costs • Costs per month were higher among recipients • Control group got less than expected (AR, NJ) • Allowance recipients got more (FL) • C&C may generate savings in other Medicaid services, particularly nursing facility costs

  12. Policy Implications • Can increase access to care • Greatly improves quality of life (all ages) • Caregivers also benefit greatly • States may be concerned about costs - But have learned how to control them

  13. Considerations for Controlling Costs • Control counseling costs • Set discount factor appropriately • Recover unused allowance • Develop standardized reassessment procedure • Limit program to active PCS/HCBS recipients ? • Monitor costs for C&C and agency program

  14. Sample Sizes

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