Across-the-board spending cuts that began March 1, called sequestration, will reduce spending on Meals on Wheels this year by an estimated $10 million. But these savings will be dwarfed by at least $489 million per year in increased spending on Medicaid, both this year and in each subsequent year that sequestration remains in place as more seniors are unable to live on their own and are moved into nursing homes. Nationally, according to a survey by the Administration on Aging, as many as 92% of Meals on Wheels enrollees say the program enables them to continue to live in their own home rather than in comparatively expensive nursing homes. The average cost to Medicaid of nursing home care is approximately $57,878 per patient annually; by contrast, the annual cost to Medicaid of home care is much lower, approximately $15,371, or $42,507 less than nursing home care.
Source: Center for Effective Government, 8/13, Meals on Wheels
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