January 27, 2011 |

AARP Report Examines Recession’s Impact on States, LTC Services Funding (Video)

Thirty-one states have made cuts to the budgets of non-Medicaid-funded long-term care services programs during 2010, and 28 have or intend to cut those same programs in 2011, according to a report from the AARP Public Policy Institute. Cuts are due in part to the economic recession, which continues to threaten state programs for older adults and the disabled.

“Faced with significantly falling tax revenues, states are also contending with increasing service demands, forcing many states to impose new limits on non-Medicaid long-term services and supports (LTSS),” according to the AARP Public Policy Institute. While states have been able to sustain Medicaid LTSS because of economic stimulus money, they are expected to make cuts to those programs as well when the stimulus funds expire in June.

The AARP Public Policy Institute also reported that states are using the recession as an “opportunity to balance services from institutional to non-institutional settings.”

Issue Brief of AARP Public Policy Institute report (PDF format)

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