New kind of CCRC would lower states' Medicaid costs, report finds

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A demonstration proposal that would create a new kind of continuing care retirement community would save state Medicaid programs upwards of 20% on long-term care costs, according to a report from Avalere.

The proposal would create Senior Health and Housing Initiative for Transformation (SHIFT) communities. These communities would bring healthcare, housing and long-term care together in one location and pay for the services by combining public and private funds. It would pool funding from Medicare, Medicaid and seniors' home equity to provide acute care, long-term care services and housing to seniors who live in these communities.

Medicaid would spend about 20% less on an initial cohort of 1,000 SHIFT enrollees than it would for the same population under current law, the report found. The paper was written on behalf of Wesley Enhanced Living. 

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