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The fallacy of impoverishment.

S A Moses1

  • 1LTC, Incorporated, Kirkland, WA 98033.

The Gerontologist
|February 1, 1990
PubMed
Summary
This summary is machine-generated.

Medicaid does not always require impoverishment for nursing home care. Many recipients keep assets, and asset spenddown is less than expected, impacting long-term care financing.

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Area of Science:

  • Health Economics
  • Public Policy
  • Gerontology

Background:

  • The traditional assumption is that Medicaid eligibility necessitates impoverishment.
  • Medicaid is a primary payer for long-term care services, particularly for the elderly.
  • Concerns exist regarding the sustainability of long-term care financing.

Purpose of the Study:

  • To challenge the assumption that Medicaid requires impoverishment for long-term care.
  • To analyze the extent of asset retention among Medicaid nursing home recipients.
  • To explore the implications of these findings for the long-term care financing crisis.

Main Methods:

  • Review of recent studies on Medicaid eligibility and asset spenddown.
  • Analysis of data on asset retention among nursing home Medicaid recipients.

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  • Exploration of the financial implications for public costs and heirs.

    • Main Results:

    • Contrary to common belief, many Medicaid nursing home recipients retain significant assets.
    • The actual amount of asset spenddown is considerably lower than previously estimated.
    • A substantial portion of elderly poor individuals remain uncovered by Medicaid.

    Conclusions:

    • The assumption of impoverishment for Medicaid eligibility is inaccurate.
    • Lower-than-expected asset spenddown has significant implications for public cost recovery.
    • Findings highlight the need for revised strategies to address the long-term care financing crisis.