By Dave Ranney, KHI News Service, January 27, 2010
TOPEKA — Kansas Department on Aging Secretary Martin Kennedy has put some dollars signs behind the often-heard assertion that it’s cheaper to help the frail elderly live in their own homes than it is to care for them in nursing homes.
"The average monthly Medicaid cost for someone in a nursing home is $2,838," Kennedy said Wednesday, addressing an afternoon meeting of the House Social Services Budget Committee. "For someone receiving services in their home, the average monthly cost is $1,049. So you can see that a nursing home placement costs almost three times as much."
The department’s Medicaid program currently underwrites in-home services for 5,706 frail seniors and pays for another 10,817 who are in nursing homes.
The nursing home stays tap the department’s $491 million budget for almost $367 million. Home and community based services cost $72.1 million.
"When you put the two together, it’s right at 90 percent of our budget," Kennedy said.
Despite the recent 10 percent cut in Medicaid payments to nursing homes and in-home service providers, Kennedy said he’s resisted cutting or freezing access to in-home services.
Asked how many of those receiving in-home services would be eligible for nursing home care if they were unable to remain at home, Kennedy replied: "Every one of them."
Earlier this year, budget cuts caused the department to eliminate its support for four types of in-home services:
Dropping these services is expected to reduce the department’s draw on the State General Fund by about $2 million.
Nursing homes, Kennedy said, bore the brunt of the 10 percent cut in Medicaid payments.
Committee chairwoman Peggy Mast, R-Emporia, asked Kennedy if there were other state funds in his budget that could be cut instead of the Medicaid payments.
Kennedy said there were but that would mean cutting state support for senior meals programs and for in-home services for frail elderly who are not yet eligible for Medicaid.