As Managed Care expands into Medicaid, we may see more Medicaid-funded assisted living, and the jury is still out on what that means.

Let’s face it, there will be a growing number of people over age 80 who will not be able to afford to live in assisted living and memory care communities, at least not the ones being built today. Even fewer can afford skilled nursing, with monthly private pay rates two and three times higher than assisted living. So what’s going to happen? Some people say home- and community-based care will fill the void, but that is not always cheaper nor the best option. Some states have done a good job with Medicaid waivers to financially support lower-income seniors who need to or want to move into an assisted living environment. Illinois is one state that has done a good job with this. But is an expansion of Medicaid into assisted living a good thing for the sector and its providers? States may be forced to look into lower cost options to skilled nursing, and you know, that as managed care increasingly penetrates states’ Medicaid budgets, they are going to seek lower costs. While this may open up a host of opportunities for providers, be careful what you wish for. Join me next week for our webinar titled “Assisted Living and Medicaid: Will it harm a great product?”