Medicaid Home- and Community-Based Services Waivers for People With Intellectual and Developmental Disabilities.
Medicaid pours $47k per person with IDD into waivers, yet most dollars still fund day and residential programs instead of evidence-based employment services.
01Research in Context
What this study did
Friedman (2023) counted every Medicaid Home- and Community-Based Services waiver dollar spent on people with intellectual or developmental disabilities in 2021.
The team looked at all 50 states and added up costs for 861,038 people. They sorted spending into service types like residential help, day programs, and job supports.
What they found
Total spending hit $43.2 billion, or about $47,315 for each person.
The biggest slice paid for group homes and in-home aides. Day habilitation came next. Job services got a smaller share.
How this fits with other research
Domin et al. (2013) warned that only a large share of people with IDD hold real jobs. Carli’s numbers show waiver dollars still follow that pattern—most money goes to day and residential care, not work.
Wehman et al. (2014) proved supported employment raises job rates for youth with IDD. Carli’s data reveal the cash is there; it just isn’t flowing to those proven job models.
Barton et al. (2019) found kids use fewer than half of approved ABA hours. Carli’s report hints the same leak may hit adult services—funds are approved but may not reach clients.
Why it matters
You now have a price tag: $47k per client. Ask where it goes. If the goal is community work, shift more waiver funds toward supported or customized employment shown to work by Wehman et al. (2014) and Wilson et al. (2023). Track hours like Barton et al. (2019) did to be sure money turns into real services.
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Open your client’s waiver budget, compare the residential/day line items to the employment line, and propose one funding swap toward supported employment.
02At a glance
03Original abstract
Medicaid Home- and Community-Based Services (HCBS) 1915(c) waivers are the most prominent funding mechanism for the long-term services and supports (LTSS) of people with intellectual and developmental disabilities (IDD). This study's aim was to conduct an in-depth national analysis of fiscal year (FY) 2021 HCBS 1915(c) waivers for people with IDD. In FY 2021, over $43.2 billion was projected for the HCBS of 861,038 people with IDD. An average of $47,315 was projected per person with IDD annually. The services that received the most funding were: residential habilitation; supports to live in one's own home; and day habilitation. HCBS is necessary so people with IDD can live and thrive in their communities.
Intellectual and developmental disabilities, 2023 · doi:10.1352/1934-9556-61.4.269