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July 11, 2018
Policy Report
Andrea Bennett
Pam Curtis
Curtis S. Harrod
Publication
Sep 24, 2026
Sep 21, 2026
Jul 23, 2026
As the US population ages, the demand for long-term care options has grown. Special focus has been on Medicaid programs, which pay for most long-term services and supports (LTSS) in this country. But as public policy has shifted LTSS from institutional settings to home- and community-based settings, new questions arise for policymakers who want to know how Medicaid agencies measure the quality of home- and community-based services (HCBS), how they pay for them, and how to encourage more cost-effective services.
One alternative payment model for HCBS that has attracted attention is “bundled payments,” a package of health care services paid for as a set. They are currently used in Arkansas and Colorado, where assisted-living facilities or contracted home health agencies receive a daily rate to provide HCBS.
To help state policymakers address the challenges of developing HCBS, the Medicaid Evidence-based Decisions Project (MED) commissioned a report focused on alternative payment methods and quality metrics for HCBS. MED is a self-governing collaboration of state Medicaid agencies, based at the Center for Evidence-based Policy (CEBP) at Oregon Health & Science University.
This report, adapted from the MED report, is also authored by CEBP staff and addresses the same questions for a broader audience. It offers tools, resources, and examples for policymakers as they look for innovative ways to reimburse for and assess quality in Medicaid HCBS, a challenge that will grow in the future as Medicaid enrolls more elderly Americans.
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