This research brief from the Community Living Policy Center highlights that Medicaid Home and Community-Based Services (HCBS) significantly improve quality of life while proving more cost-effective than institutional care. Research indicates that transitioning individuals from nursing homes to the community via programs like "Money Follows the Person" reduces healthcare costs by 23-30%, as the average annual expenditure for HCBS is approximately $17,298 per person compared to $54,462 for institutional settings. Beyond financial savings, HCBS access is linked to better health outcomes, including fewer emergency room visits and hospitalizations, by addressing social determinants of health and promoting person-centered planning. However, the report notes that these benefits are currently threatened by a direct care workforce crisis and significant unmet needs, with over 600,000 individuals remaining on waiting lists for services.

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