Adequate Medicaid Reimbursement

Providers of long-term services and supports (LTSS) cannot ensure high-quality services without sufficient funding. Research suggests that higher Medicaid reimbursement is associated with better care. However, providers should be required to demonstrate that reimbursement increases intended to improve the quality of LTSS achieve this goal.

Many states use LTSS payment systems that link payment levels to participant needs—either case-mix adjusted or tiered rates. These payment approaches ensure that nursing facilities and assisted living providers will accept and continue providing sufficient services to residents with substantial care needs.