Posting date: June 16, 2004

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Health Affairs, 10.1377/hlthaff.w4.363
Copyright © 2004 by Project HOPE

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Recent Trends In State Nursing Home Payment Policies

¹ David Grabowski is an assistant professor in the Department of Health Care Organization and Policy, University of Alabama at Birmingham.
² Zhanlian Feng is a project analyst in the Center for Gerontology and Health Care Research, Brown University, in Providence, Rhode Island.
³ Orna Intrator is an assistant professor in the Center for Gerontology and Health Care Research, Brown University, in Providence, Rhode Island.
⁴ Vincent Mor is a professor and head of the Department of Community Health, School of Medicine, at Brown.

^*Corresponding author.

Abstract

State Medicaid programs pay for a sizable portion of overall nursing home expenditures. The repeal of the Boren amendment in 1997 gave states greater freedom to set Medicaid nursing home policy. This study presents data from a comprehensive survey of state nursing home payment policies during 1999-2002. Aggregate inflation-adjusted Medicaid payment rates rose steadily, and there was no sizable increase in the adoption of other cost-cutting policies. Although these findings can be interpreted with some optimism from a nursing home financing perspective, areas of common concern remain for state nursing home policy during the next several years.

Key Words: Consumer Issues, Elderly, Long-Term Care, Medicaid, Medicare, Quality Of Care, State/Local Issues, Health Spending

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