OHCA 2020 Oregon Long Term Care State Report

www.ohca.com Oregon Health Care Association 10 State Budget Funding long term care services and supports is a partnership between the state and federal governments and providers. Oregon was one of the first states to develop community-based care settings like assisted living and today leads the nation in the percentage of its Medicaid funds going to home and home-like settings. In fact, roughly 80% of Oregon’s Medicaid dollars go to these settings instead of nursing facilities. 14 In 2020, the federal government matched over 61.2 cents for every dollar the state spends to support long term care for Oregonians on Medicaid (a 61% match). 15 This match, which has been around since 1965 with fluctuating match rates, is called the Federal Medical Assistance Percentages (FMAP). With the passage of the Affordable Care Act, the Federal government created a program to incentivize states to invest more in home and community-based care settings by offering a higher match rate for states that deliver services through a K Waiver. This program, called the K Plan, helps save both the state and federal government money by encouraging the use of less restrictive, home-like care settings which are also much more cost-effective than more skilled settings like nursing facilities. Oregon has a K Waiver plan and receives an additional FMAP rate of 6%. Since the declaration of the national emergency in response to the COVID-19 pandemic, Oregon has received an enhanced FMAP rate of an additional 6.2% bringing Federal support for long term care services to roughly 70%. This means that today, for every dollar the state spends to support long term care services and support for Oregonians on Medicaid, the federal government kicks in nearly 70 cents. It is also important to note that nursing facilities also pay a 6% provider assessment which helps to support Medicaid reimbursement rates in Oregon. FOR EVERY DOLLAR THE STATE SPENDS TO SUPPORT LONG TERM CARE SERVICES AND SUPPORT FOR OREGONIANS ON MEDICAID, THE FEDERAL GOVERNMENT KICKS IN NEARLY 70 CENTS.