Assisted Living Providers Continue To Struggle

Saturday, September 7th, 2024 -- 7:55 AM

Assisted living has grown in popularity across Wisconsin and the country, offering aging residents and people with disabilities more independence in less institutionalized settings than traditional nursing homes.

But providers continue to struggle. Low state reimbursement rates through Medicaid have depressed provider revenue and worker pay. That has led some facilities to oust residents who rely on government assistance or even close, limiting options for residents in need. In 2023 alone, 148 Wisconsin assisted living communities closed voluntarily, according to the Wisconsin Department of Health Services.  

The state has incrementally boosted Medicaid reimbursement rates to cover assisted living and home health care, but not every provider benefited, and the rates continue to lag behind the cost of care. Democratic Gov. Tony Evers in August directed the state health department to spend more than $250 million in federal pandemic relief on assisted living. 

Long-term care experts say Evers’ action will help, but only temporarily, and it still falls short of the full cost of care.

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