Long-term care continues to take a healthy bite out of Medicaid funding

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Long-term care consumed more than a third of the nearly $320 billion spent on Medicaid services during fiscal year 2007, according to a new Kaiser Family Foundation report. Most of the $109 billion spent on long-term care went to nursing homes ($47.8 billion), followed by home and personal care ($43.6 billion), ICF-MR services ($12.4 billion) and mental health facilities ($4.8 billion). The report found that the federal government paid 57% of the total, with the remaining 43% falling on states. Nearly $195 billion (61%) of all Medicaid funding was used to cover acute care services, while another $15.9 billion (5%) went to disproportionate share hospital payments, investigators found.