Leveraging ARPA funds for home- and community-based care
The majority of older adults want to remain in their own homes and communities as they age, and home- and community-based care tends to be more cost-effective than institutional alternatives. Estimates indicate that gradually shifting Medicaid spending from institutional services to home- and community-based care, a process known as rebalancing, can reduce state costs by about 15 percent over 10 years.
The federal American Rescue Plan Act temporarily increased funding states could use to improve Medicaid home- and community-based services, known as HCBS. States have through March 31, 2025, to use the funding for a variety of HCBS services.