CASE STUDY
How Much Does Medicaid Pay for a Caregiver vs. Nursing Facility?
Challenge
Understanding the financial implications for Medicaid when funding family caregivers compared to nursing facility care.
Results
The case study reveals that Medicaid saves significantly when supporting family caregivers compared to the high costs of nursing home care.
Program
Structured Family Care
BY THE NUMBERS
$8,908
Avg Monthly Cost of Nursing Facility in Indiana
$3,041
Avg Monthly Cost of Family Caregiver in Indiana
$70,504
Annual Savings Per Family to Medicaid when choosing family caregivers
$5,867
Monthly Savings Per Individual to Indiana Medicaid
HOW WE HELP
Paid.care provides the support, training, and payment to family caregivers.
Nursing Homes Vs. Family Caregivers
The Challenge
According to the AARP 10,000+ people turning 65 each day. With that, the Indiana Department of Health - Medicaid Division faced the challenge of managing escalating long-term care costs, particularly the high expenses associated with nursing facility care. With the average monthly cost of a nursing facility in Indiana standing at $8,908, there was a pressing need to explore more cost-effective solutions without compromising on the quality of care.
The Solution
The Indiana Department of Health - Medicaid Division, specifically the FSSA, began exploring alternative care models and discovered the potential benefits of supporting family caregivers. After evaluating various options, they decided to implement Medicaid Waiver programs for Family Caregivers. "Supporting family caregivers not only alleviates financial pressure on Medicaid but also ensures that loved ones receive care in a familiar environment," said Jane Doe, Healthcare Policy Analyst. This approach provided a more personalized care option at a significantly lower cost, with a family caregiver in Indiana on the Structured Family Care program costing Medicaid $3,000 per month.
The Results
The switch to Structured Family Care for Family Caregivers leads to substantial savings and improved outcomes. By reducing the monthly cost from $8,908 for a nursing facility to $3,041 for a family caregiver, Medicaid saves $5,508 per individual each month.
"The cost difference is substantial. Investing in family caregivers can lead to significant savings for the state," notes Brooks Butler, COO of Paid.care and advocate for family caregivers. These savings enable Medicaid to allocate resources more efficiently while ensuring that beneficiaries receive care in a more supportive and familiar environment.
