According to a new report by Deloitte’s Center for Health Solution, state governments’ obligation to their Long-Term Care (LTC) Medicaid enrollees may have the potential to debilitate government effectiveness and create severe fiscal distress. The report, "Medicaid Long-term Care: The Ticking Time Bomb," cites state budgetary pressures, the fact that Medicaid is the nation’s primary source of long-term care services and the lack of any short-term relief expected from federal health care reform. The Deloitte report shows Medicaid budgets as a percentage of state operating budgets will almost double by the year 2030 – some reaching levels close to 40 percent. In certain states, expenditures for long-term care account for about half of this trend.
"Medicaid long-term care is one of state government’s most urgent health care challenges. Failure to innovate with medical and administrative best practices is likely to result in runaway costs, poor quality care and challenging fiscal budget holes for states," said Bob Campbell, vice chairman and leader of Deloitte’s state government practice. "Taxpayers and the millions of people who depend on Medicaid long-term care should understand that this is a critical issue that demands immediate attention."