Does Cash & Counseling increase states Medicaid costs?
Cash & Counseling does not increase states’ Medicaid costs, if people receive the care to which they are entitled under the traditional system. This conclusion is based on the findings of the evaluation of the original Cash & Counseling Demonstration and Evaluation program in Arkansas, Florida, and New Jersey. In each age group in each state, Cash & Counseling participants had lower expenditures on other Medicaid services – such as nursing homes, home health, and other home care waiver services. These savings in other Medicaid costs partially offset Cash & Counseling’s higher personal assistance costs that, in most cases, resulted from traditional agencies’ failure to deliver services.
