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Weathering the Storm: The Impact of the Great Recession on

Long-Term Services and Supports

 

Weathering the Storm: The Impact of the Great Recession on Long- Term Services and Supports is a joint report by the AARP Public Policy Institute, the National Association of States United for Aging and Disabilities (NASUAD), and Health Management Associates (HMA).  

Power Point Presentation

Full Report

In Brief

Compiled State Profiles

The report is built on NASUAD’s five prior economic surveys and is the most comprehensive analysis to date on the budget cuts to both Medicaid and non-Medicaid–funded long-term services and supports (LTSS) in each state. The 50-state study surveyed each state’s aging department and Medicaid agency to determine the impact the recession has on state programs for older individuals and adults with physical disabilities.  The report also illustrates state-by-state how LTSS are financed. In addition, the study provides a very early snapshot of the likelihood of states pursuing some of the LTSS provisions within the Affordable Care Act (ACA).  An individual state profile summarizing additional information obtained from each state that participated in the survey is located at the bottom of this page. 

The report demonstrated that the recession remains a sustained and growing concern for state agencies.  States have used many administrative tools to curtail expenditures. At the same time, demand for publicly funded services has grown, and resources—including staff—are stretched thin. Specifically, 31 states cut aging and disability service programs (non-Medicaid) in FY 2010, and 28 states were expecting to cut these programs in FY 2011.  Additionally, while the report showed that the American Recovery and Reinvestment Act (ARRA) stimulus funds helped preserve certain programs, many states said that they will need to make additional cuts in LTSS as the enhanced FMAP phases down and terminates.

On a brighter note, many states are using the economic downturn as an opportunity to balance services from institutional to non-institutional settings.  And while the Affordable Care Act provides states with new opportunities to expand home and community-based services, many states are reluctant to commit to these programs until further federal guidance is issued.

While most states were “weathering the storm” in FY 2010, recent anecdotal evidence suggests that even in the states that had earlier reported little effect from the economic downturn, the tide is now turning, causing additional fiscal stress on systems.  Also, the election of 26 new governors is likely to shift state aging and disability policy in a record number of states. The new leadership at the state level will extend to the appointment of key personnel in state aging agencies, state Medicaid agencies, and other state departments.  

Moving forward, the report showed that as states confront these and many other challenges to advance policy goals around services for seniors and individuals with disabilities, the future will undoubtedly call for creativity and renewed commitment from state policymakers to maintain the critical safety net for their more vulnerable citizens.

Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
DC
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky

Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio

Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming


National Association of States United for Aging and Disabilities, 1201 15th St. NW, Ste. 350, Washington, DC 20005
Phone: (202) 898-2578 | Fax: (202) 898-2583 | info@nasuad.org

2010 National Association of States United for Aging and Disabilities. All rights reserved.