Results: Among dual eligibles and non-dual eligibles, the average number of diseases and case mix scores are higher for LTC users. Adjusting for case mix virtually eliminates the difference for medical costs, but not for LTC expenditures. Adjusting for LTC status reduces the difference in LTC costs, but increases the difference in medical costs.
Conclusions:Efforts to control costs for dual eligibles should target those in LTC while better coordinating medical and LTC expenditures. Access, Demand Uninsured, 2011Uninsured, , 2012 Kane, Homyak, Parashuram, Lee, & Woodhouse, 2008; Kasper, Watts, & Lyons, 2010; Young, Garfield, Musumeci, Clemens-Cope, Lawton, 2012). However, the data are mainly descriptive and do not account for the role of casemix or other characteristics. One explanation for disproportionate costs is that double program coverage results in overlaps and inefficiencies, leading to proposed solutions such as integrated care (Gold, Jacobson, & Garfield, 2012;Meyer, 2012;Neuman, Lyons, Rentas, & Rowland, 2012). There is a clear need to identify the specific characteristics of Medicare-Medicaid enrollees that account for their disproportionately high expenditures for medical and long-term care.
Keywords:The only study to examine the effect of casemix on Medicare-Medicaid enrollees' higher LTC costs found that they were largely attributable to greater levels of dysfunction and disease burden (Liu, Long, & Aragon, 1998). Our study builds upon this work with more recent data and a separate examination of the role of LTC care setting and case mix for elderly MedicaidMedicare beneficiaries. We analyzed Medicare and Medicaid data to examine how type of long-term care and case mix affect expenditures towards medical care and LTC for older MedicareMedicaid enrollees and non-duals, and how these expenditures vary between programs and settings. In response to the findings of Bubolz, Emerson, and Skinner (2012), we also looked for evidence of de facto cross-subsidization among those covered by both Medicare and Medicaid; namely, was nursing home use (covered only by Medicaid) associated with lower medical care use (covered by Medicare)?
Methods
Study PopulationOur study population consists of individuals aged 65 years and older in 2005, enrolled in (1) Medicaid only, (2) Medicare only, and (3) Medicare and Medicaid simultaneously. We selected residents from seven states (Arkansas, Florida, Minnesota, New Mexico, Texas, Vermont, and Washington) who illustrate diverse management techniques across the target populations, and diverse state characteristics; e.g., demographics, size, geography, structure of county government, and policies. The LTC waiver, state plan programs, and plan variations are summarized in Appendix Exhibit A1. All of the states had an aging and disability waiver.In order to analyze the characteristics and expenditures of duals and non-dual beneficiaries based on LTC utilization, we classified our study sample into four groups based on program enrollment and LTC use: MMRR 2013: Volume 3 ...