Home

Iowa Gets $300 Million to Expand Home Care Service

Tue, 10/17/2000 - 11:00pm — Karen Stevenson
Description: 

Iowa is set to receive more than $300 million in federal money to expand home- and community-based services for the elderly, according to Governor Tom Vilsack. The money is intended to keep older Iowans in their own homes longer, saving money in the long run by limiting the use of expensive nursing-home care. The money also would open new options for disabled adults, who often end up in nursing homes.

The state knew it would receive about $95 million in federal money. Additional payments were uncertain, however, because federal officials were working to close a loophole that allowed Iowa and 18 other states to get the Medicaid money. New federal rules mean that Iowa will receive the full amount it had been seeking, totaling more than $300 million, Vilsack announced at his weekly news conference. He said a challenge to the new rules was unlikely.

The $300 million will be placed in the state's new 'senior Living Trust." The money will help Iowa expand in-home and assisted-living options that are cheaper than nursing-home care. The grant program allows funding consideration for conversion of nursing facility beds to affordable assisted living units, and for development of Home and Community Based Services such as adult day care, respite care services, child care for children with special needs, and safe shelter for victims of dependent adult abuse. It is anticipated that $20,000,000 will be available for these grants for capital or one-time expenditures, including expenses for start-up, training and operation losses associated with the first year of development. Eligible applicants include licensed nursing facilities and other providers of long-term care services.

?With the proper investment of these new resources, our comprehensive ?Senior Living Trust? long-term care system will become the model for the rest of the nation. We will be able to create a system that is consumer directed based on the principles of independence, quality, dignity, privacy, and personal choice,? Vilsack said.

The state could then save about $73 million in annual Medicaid costs by 2004, Vilsack said. Iowa received its first payment - $95 million - this month. Officials estimate that Iowa would receive $112 million in 2001, $106 million in 2002 and $24 million in 2003.

Iowa is set to receive more than $300 million in federal money to expand home- and community-based services for the elderly, according to Governor Tom Vilsack. The money is intended to keep older Iowans in their own homes longer, saving money in the long run by limiting the use of expensive nursing-home care. The money also would open new options for disabled adults, who often end up in nursing homes.

The state knew it would receive about $95 million in federal money. Additional payments were uncertain, however, because federal officials were working to close a loophole that allowed Iowa and 18 other states to get the Medicaid money. New federal rules mean that Iowa will receive the full amount it had been seeking, totaling more than $300 million, Vilsack announced at his weekly news conference. He said a challenge to the new rules was unlikely.

The $300 million will be placed in the state's new 'senior Living Trust." The money will help Iowa expand in-home and assisted-living options that are cheaper than nursing-home care. The grant program allows funding consideration for conversion of nursing facility beds to affordable assisted living units, and for development of Home and Community Based Services such as adult day care, respite care services, child care for children with special needs, and safe shelter for victims of dependent adult abuse. It is anticipated that $20,000,000 will be available for these grants for capital or one-time expenditures, including expenses for start-up, training and operation losses associated with the first year of development. Eligible applicants include licensed nursing facilities and other providers of long-term care services.

?With the proper investment of these new resources, our comprehensive ?Senior Living Trust? long-term care system will become the model for the rest of the nation. We will be able to create a system that is consumer directed based on the principles of independence, quality, dignity, privacy, and personal choice,? Vilsack said.

The state could then save about $73 million in annual Medicaid costs by 2004, Vilsack said. Iowa received its first payment - $95 million - this month. Officials estimate that Iowa would receive $112 million in 2001, $106 million in 2002 and $24 million in 2003.