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How to Fix Long-Term Care Financing

July 26, 2017
By Stephen A. Moses

In this report, Center for Long-Term Care Reform President Stephen A. Moses "explains and substantiates the argument that easy access to Medicaid after care is needed has caused most of long-term care’s problems."

"Medicaid long-term care eligibility does not require impoverishment, despite the conventional wisdom espoused by analysts who misunderstand and misrepresent the role Medicaid plays in the long-term care financing system. Ironically, Medicaid’s counterproductive design actually created the dysfunctions that many analysts and policymakers seek to fix with new entitlement programs. These problems – created by government interference in the long-term care market – would retreat if the market were freer.

Significant changes to Medicaid long-term care eligibility policy as recommended here would improve the program as a safety net for the poor. Every dollar spent on Medicaid benefits for middle-class and affluent families is a dollar that cannot be devoted to the most vulnerable. Policymakers must act swiftly to end Medicaid’s perverse incentives and refocus the program on the needy."