Minnesota State Policy and Demographics
Due to the high cost of long-term health care, the State of Minnesota has adopted a policy of finding alternate care to traditional nursing home care. Two decades ago, there were approximately 48,000 nursing home beds in Minnesota. As of August 1, 2014, the number of active beds dropped to 29,230.
Other reasons for the decline in traditional nursing home care are:
- Inadequacy of approved nursing home reimbursement rates under medical assistance;
- Increased operating expenses;
- Obsolescence of old nursing home facilities; and
- Expansion of less expensive assisted living facilities.
- In 2013, approximately $2.3 billion was spent on nursing home care in Minnesota.
As of September 30, 2013, the cost of care was paid through a variety of sources. Medical assistance paid for 56% of nursing home care. Medicare paid for 9.3% of care. Personal income and savings paid for 25.6%.
In 2013, the total amount of medical assistance payments to nursing homes was approximately $759 million. This compares to $796 million in 2011.