Capping Medicaid: How Per Capita Caps Would Affect Long-Term Services & Supports and Home Care Jobs

The Center for Consumer Engagement in Health Innovation and Leading Age jointly release this report: “Capping Medicaid: How Per Capita Caps Would Affect Long-Term Services & Supports and Home Care Jobs.” It examines factors that would affect states’ abilities to provide LTSS in a per capita cap system. The American Health Care Act’’s capped funding would apply a “one-size fits all” formula to Medicaid financing that would not provide states with the flexibility necessary to respond to their unique needs.

The report also provides information on how the labor force that provides LTSS would be affected by per capita caps. A shift to per capita caps has the potential to result in significant decreases in home health and personal care aide jobs as there would be fewer resources available to pay these workers, even as the need for their services continues to grow in the years ahead.