The Effect of Medicaid Home and Community- Based Services on Health Outcomes

The Medicaid Home and Community- Based Services (HCBS) program in the
United States subsidizes the long-term care provided at home or in community-based
settings for older adults. Little is known about how HCBS affects the well-being of
the aging population. Using detailed information about health from the Health and
Retirement Study (HRS) linked with state-level HCBS policy expenditures, we show
that HCBS indeed helps older people avoid institutionalization and stay at home
longer. Furthermore, the program is positively associated with the probability of
older individuals reporting better mental health, especially among people with
limited resources.